Ignore the Big Tech Valuation Premium—This Under-the-Radar AI Leader Is a Cash-Rich Sanctuary for Retirees Quick Read – IBM has raised its dividend for 31 straight years, with a 54% FCF payout ratio signaling the $6.76 annual payment is well-protected. – Arvind Krishna guided…
M toward $15.7 billion in 2026 FCF against a $6.3 billion dividend obligation, leaving substantial room for continued increases. – IBM carries $61.3 billion in debt at 2.8x EBITDA, but 6.3x interest coverage keeps dividend service from becoming a threat. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and IBM didn’t make the cut. Grab the names FREE today
IBM (NYSE:IBM) has quietly become a cash-generating utility for corporate AI orchestration, sitting on a $255.3 billion market cap with a $12.5 billion generative AI book of business. For income investors who dismiss enterprise tech as too volatile for a retirement portfolio, the question is simple. Is the dividend safe?
Dividend Snapshot Payout Ratios Leave Real Room to Breathe In 2025, IBM paid $6.255 billion in common dividends against $11.575 billion of free cash flow. That is a comfortable FCF payout ratio of 54%. Earnings per share came in at $11.59 against roughly $6.72 in dividends, so about 58% of profits funded the payout.