IBM Pays $3.2 Billion in Dividends Through H1 2026. Here’s Where Shares Could Go in 2026

Key Takeaways

• IBM returned $3.2 billion to shareholders in dividends through the first half of 2026, CFO Jim Kavanaugh confirmed on the Q2 earnings call, even as free cash flow held flat at $4.8 billion.
• The quarterly dividend reached $1.69 as of June 30, 2026, up from $1.68.
• The payout ratio sat at 73.44% last quarter, down from 129.61% three months earlier, while the yield closed at 2.72%, below its 3.10% mean.
• TIKR’s mid-case model puts a $340 target on IBM stock, realized by December 2030, for a 36% total return and an 8% annualized rate from today’s $249 price.

IBM’s payout ratio swung from 28.11% to 129.61% in a single quarter. Dig into its full dividend history and yield trends on TIKR for free →

IBM’s $3.2 Billion Dividend Payout Held Steady Through a Free Cash Flow Stall

International Business Machines Corporation (IBM) returned $3.2 billion to shareholders in dividends through the first half of 2026, CFO Jim Kavanaugh told analysts on the…