International Business Machines Corporation (IBM) Yield on Cost (YOC): 2.45%
The yield on cost (YOC) for International Business Machines Corporation (IBM) is 2.45%.
IBM Yield on Cost (YOC) Metrics
YIELD ON COST (YOC)
2.45%
Forward Yield on Cost Projections
If you buy IBM today at the current stock price of $274.28 with a yield of 2.45% and dividends continue to grow at the historical rate (1.5% CAGR), your YOC would be:
Current Yield
2.45%
YOC in 3 Years
2.60%
YOC in 5 Years
2.70%
YOC in 10 Years
2.97%
Interactive Yield on Cost Calculator
Project custom investment returns for International Business Machines Corporation (IBM) based on your custom cost basis.
Starting Yield
2.45%
Ending YOC
3.08%
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 | — | 2.45% | $0.00 |
| Year 1 | $6.83 | +1.52% | 2.49% | $6.83 |
| Year 2 | $6.94 | +1.52% | 2.53% | $13.77 |
| Year 3 | $7.04 | +1.52% | 2.57% | $20.81 |
| Year 4 | $7.15 | +1.52% | 2.61% | $27.96 |
| Year 5 | $7.26 | +1.52% | 2.65% | $35.22 |
| Year 6 | $7.37 | +1.52% | 2.69% | $42.58 |
| Year 7 | $7.48 | +1.52% | 2.73% | $50.06 |
| Year 8 | $7.59 | +1.52% | 2.77% | $57.66 |
| Year 9 | $7.71 | +1.52% | 2.81% | $65.36 |
| Year 10 | $7.83 | +1.52% | 2.85% | $73.19 |
| Year 11 | $7.94 | +1.52% | 2.90% | $81.14 |
| Year 12 | $8.07 | +1.52% | 2.94% | $89.20 |
| Year 13 | $8.19 | +1.52% | 2.99% | $97.39 |
| Year 14 | $8.31 | +1.52% | 3.03% | $105.70 |
| Year 15 | $8.44 | +1.52% | 3.08% | $114.14 |
Yield on Cost (YOC) Formula
Formula: Yield on Cost = Annual Dividend / Original Purchase Price × 100
Inputs shown in the projection:
- Original purchase price.
- Annual dividend per share at the starting point.
- Assumed annual dividend growth rate.
- Projected annual dividend divided by original purchase price.
Note: Forward projections assume dividends continue to grow at the designated growth rate. Actual dividend payments are declared by corporate boards and are subject to change.
International Business Machines Corporation Yield on Cost (YOC) Formula & Definition
Yield on Cost shows the dividend yield based on your original purchase price. As dividends grow, your YOC increases even if the market yield stays the same.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
International Business Machines Corporation Yield on Cost (YOC) FAQ
- What is the yield on cost (YOC) for International Business Machines Corporation (IBM)?
- The yield on cost (YOC) for IBM stock is 2.45%.
About International Business Machines Corporation
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Arvind Krishna