IBM CEO Ginny Rometty
IBM (IBM) delivered a Q1 earnings beat, but the market did not like the quarter. The stock has fallen by more than 9% since the earnings report. The company raised its quarterly dividend to $1.57 - a 4.7% increase - shortly thereafter:
The IBM Board of Directors today declared a regular quarterly cash dividend of $1.57 per common share, payable June 9, 2018 to stockholders of record as of May 10, 2018. Today’s dividend declaration represents an increase of $0.07, or five percent higher than the prior quarterly dividend of $1.50 per common share.
This is the 23rd year in a row that IBM has increased its quarterly cash dividend. IBM has paid consecutive quarterly dividends since 1916.
Financially the company is strong. IBM has over $13 billion in cash on hand and generates about $890 million in free cash flow per quarter. The company has a $133 billion market capitalization. Whether it can maintain that market capitalization amid declining sentiment for the stock and potential volatility for financial markets remains to be seen.
