IBM bucks coronavirus trend by boosting dividend

New rate represents an annual yield of about 5.18%

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As myriad companies slash or suspend their dividends amid the economic chaos sparked by the coronavirus pandemic, International Business Machines Corp. on Tuesday said its board bumped the quarterly payout up by a penny to $1.63.

The new rate, equal to $6.52 a year, represents an annual yield of about 5.18% based on Monday's closing price of $125.92, up from 5.08%.

TickerSecurityLastChangeChange %
IBMINTERNATIONAL BUSINESS MACHINES CORP.124.42+4.33+3.61%

IBM, which has paid consecutive quarterly dividends since 1916 and has increased the rate for 25 years in a row, said it remains fully committed to the payout. IBM raised the quarterly dividend by 5 cents last year and by 7 cents in 2018.

HOW DIVIDENDS WORK

The Armonk, N.Y., tech giant said the increased dividend is payable June 10 to shareholders of record May 8.

Shares of IBM rose 1.1%, to $127.35, in early trading Tuesday.

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