Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 2.81%.
YIELD ON COST (YOC)
2.81%
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(2016-09-06) | $153.30 | 4.40% |
| 5 years ago(2021-09-14) | $130.23 | 5.18% |
| 3 years ago(2023-09-05) | $148.13 | 4.55% |
| 1 year ago(2025-09-09) | $259.11 | 2.60% |
| Buying today(at $239.94) | $239.94 | 2.81% |
Projection: starting from today's 2.81% yield, assuming the dividend keeps compounding at 1.4% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
2.81%
In 3 years
2.93%
In 5 years
3.02%
In 10 years
3.24%
Try your own purchase price, dividend and growth rate for International Business Machines Corporation (IBM).
Starting Yield
2.81%
Ending YOC
3.52%
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 | 2.81% | $0.00 |
| Year 1 | $6.84 | +1.52% | 2.85% | $6.84 |
| Year 2 | $6.95 | +1.52% | 2.90% | $13.79 |
| Year 3 | $7.05 | +1.52% | 2.94% | $20.84 |
| Year 4 | $7.16 | +1.52% | 2.98% | $28.00 |
| Year 5 | $7.27 | +1.52% | 3.03% | $35.27 |
| Year 6 | $7.38 | +1.52% | 3.08% | $42.65 |
| Year 7 | $7.49 | +1.52% | 3.12% | $50.14 |
| Year 8 | $7.60 | +1.52% | 3.17% | $57.74 |
| Year 9 | $7.72 | +1.52% | 3.22% | $65.46 |
| Year 10 | $7.84 | +1.52% | 3.27% | $73.30 |
| Year 11 | $7.96 | +1.52% | 3.32% | $81.26 |
| Year 12 | $8.08 | +1.52% | 3.37% | $89.33 |
| Year 13 | $8.20 | +1.52% | 3.42% | $97.53 |
| Year 14 | $8.32 | +1.52% | 3.47% | $105.86 |
| Year 15 | $8.45 | +1.52% | 3.52% | $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
