IBM Stock Plummets 33% as Dividend Yield Reaches 3%

IBM's stock price has fallen by 33% from its 52-week high of $332.46, currently trading at around $224.

The decline in stock value has pushed IBM's dividend yield to about 3%, a level that tends to attract income investors' attention.

However, the company's dividend is not as affordable as it seems, costing approximately $6.4 billion per year and consuming about 60% of its trailing earnings per share.

The company generated $14.7 billion in free cash flow in 2025, with an expected increase of about $1 billion in 2026, putting the full-year figure near $15.7 billion.

This means that the dividend only consumes around 40% of the cash the business is expected to produce this year, making it a more manageable expense for IBM.