Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 2.87%.
YIELD ON COST (YOC)
2.87%
IBM now pays $6.74 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:
| If you bought | Price then | Yield on cost today |
|---|---|---|
| 10 years ago(2016-08-30) | $152.39 | 4.42% |
| 5 years ago(2021-09-08) | $132.57 | 5.08% |
| 3 years ago(2023-08-29) | $146.45 | 4.60% |
| 1 year ago(2025-09-03) | $244.10 | 2.76% |
| Buying today(at $232.09) | $232.09 | 2.87% |
Projection: starting from today's 2.87% yield, assuming the dividend keeps compounding at 1.5% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
2.87%
In 3 years
3.00%
In 5 years
3.08%
In 10 years
3.31%
Try your own purchase price, dividend and growth rate for International Business Machines Corporation (IBM).
Starting Yield
2.90%
Ending YOC
3.64%
Year 15 Dividend
$8.45
Cum. Dividends Recd.
$114.31
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $6.74 | N/A | 2.90% | $0.00 |
| Year 1 | $6.84 | +1.52% | 2.95% | $6.84 |
| Year 2 | $6.95 | +1.52% | 2.99% | $13.79 |
| Year 3 | $7.05 | +1.52% | 3.04% | $20.84 |
| Year 4 | $7.16 | +1.52% | 3.08% | $28.00 |
| Year 5 | $7.27 | +1.52% | 3.13% | $35.27 |
| Year 6 | $7.38 | +1.52% | 3.18% | $42.65 |
| Year 7 | $7.49 | +1.52% | 3.23% | $50.14 |
| Year 8 | $7.60 | +1.52% | 3.28% | $57.74 |
| Year 9 | $7.72 | +1.52% | 3.33% | $65.46 |
| Year 10 | $7.84 | +1.52% | 3.38% | $73.30 |
| Year 11 | $7.96 | +1.52% | 3.43% | $81.26 |
| Year 12 | $8.08 | +1.52% | 3.48% | $89.33 |
| Year 13 | $8.20 | +1.52% | 3.53% | $97.53 |
| Year 14 | $8.32 | +1.52% | 3.59% | $105.86 |
| Year 15 | $8.45 | +1.52% | 3.64% | $114.31 |
Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
