Basis: Latest reported fiscal year. Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 3.14%.
YIELD ON COST (YOC)
3.14%
IBM now pays $6.73 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(2016-07-20) | $154.26 | 4.36% |
| 5 years ago(2021-07-28) | $135.54 | 4.97% |
| 3 years ago(2023-07-19) | $135.48 | 4.97% |
| 1 year ago(2025-07-23) | $282.01 | 2.39% |
| Buying today(at $214.19) | $214.19 | 3.14% |
Projection: starting from today's 3.14% yield, assuming the dividend keeps compounding at its historical 1.5% rate. Boards set dividends each year, so actual figures will differ.
Today
3.14%
In 3 years
3.33%
In 5 years
3.46%
In 10 years
3.81%
Try your own purchase price, dividend and growth rate for International Business Machines Corporation (IBM).
Starting Yield
3.14%
Ending YOC
3.94%
Year 15 Dividend
$8.44
Cum. Dividends Recd.
$114.14
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $6.73 | N/A | 3.14% | $0.00 |
| Year 1 | $6.83 | +1.52% | 3.19% | $6.83 |
| Year 2 | $6.94 | +1.52% | 3.24% | $13.77 |
| Year 3 | $7.04 | +1.52% | 3.29% | $20.81 |
| Year 4 | $7.15 | +1.52% | 3.34% | $27.96 |
| Year 5 | $7.26 | +1.52% | 3.39% | $35.22 |
| Year 6 | $7.37 | +1.52% | 3.44% | $42.58 |
| Year 7 | $7.48 | +1.52% | 3.49% | $50.06 |
| Year 8 | $7.59 | +1.52% | 3.55% | $57.66 |
| Year 9 | $7.71 | +1.52% | 3.60% | $65.36 |
| Year 10 | $7.83 | +1.52% | 3.65% | $73.19 |
| Year 11 | $7.94 | +1.52% | 3.71% | $81.14 |
| Year 12 | $8.07 | +1.52% | 3.77% | $89.20 |
| Year 13 | $8.19 | +1.52% | 3.82% | $97.39 |
| Year 14 | $8.31 | +1.52% | 3.88% | $105.70 |
| Year 15 | $8.44 | +1.52% | 3.94% | $114.14 |
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
