Up to date on March sixth, 2026 by Felix Martinez
We evaluation every of the Dividend Aristocrats, the group of firms within the S&P 500 Index with 25+ consecutive years of dividend will increase, yearly.
To turn out to be a Dividend Aristocrat, an organization should possess sturdy aggressive benefits and a gradual enterprise mannequin that generates yearly earnings, even throughout recessions.
Nevertheless it should even have a shareholder-friendly administration workforce devoted to sustaining constant dividend will increase annually.
Now we have compiled a listing of all 69 Dividend Aristocrats, together with key monetary metrics comparable to price-to-earnings ratios and dividend yields. You’ll be able to obtain the total checklist by clicking on the hyperlink under:
Disclaimer: Certain Dividend will not be affiliated with S&P World in any manner. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s primarily based. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.
Subsequent up within the Dividend Aristocrats In Focus collection is Worldwide Enterprise Machines (IBM). IBM has elevated its dividends 30 years in a row.
Previously few years, IBM has turned itself round by investing in new areas comparable to synthetic intelligence, information, and cloud providers, which have returned the corporate to progress.
In flip, IBM shares have rallied 60% over the previous 12 months, far outpacing the S&P 500 Index. This text will focus on IBM’s present enterprise mannequin, future progress prospects, and whether or not we see the inventory as a purchase proper now.
Enterprise Overview
IBM focuses on working mission-critical methods for giant, multinational prospects and governments. It usually gives end-to-end options. IBM spun off Kyndryl, its managed infrastructure enterprise, in 2021, however continues to be one of many largest IT providers firms on the earth.
IBM now has 4 enterprise segments: Software program, Consulting, Infrastructure, and Financing. In 2025, its annual income was $66.7B.
IBM reported fourth-quarter and full-year outcomes on January twenty eighth, 2026. IBM reported sturdy fourth-quarter 2026 outcomes, with adjusted EPS of $4.52, beating estimates, and income of $19.7 billion, up 12% year-over-year.
Progress was pushed by the Software program phase, which elevated 14% to $9.0 billion, and Infrastructure income, which surged 21% to $5.1 billion, supported by sturdy demand for the corporate’s next-generation IBM Z mainframe platform. Consulting income rose 3% to $5.3 billion, whereas working gross margin improved to 61.8%.
For the total yr 2025, IBM generated $67.5 billion in income, up 8% year-over-year, with working EPS of $11.59 and increasing profitability. Software program income elevated 11%, Infrastructure grew 12%, and Consulting rose 2%.
The corporate additionally produced $13.2 billion in working money circulation and $14.7 billion in free money circulation, reflecting double-digit progress in revenue and money technology.
Trying forward, IBM expects greater than 5% constant-currency income progress in 2026 and forecasts free money circulation to extend by about $1 billion year-over-year. Administration highlighted sturdy demand for hybrid cloud, automation, and information platforms, together with a generative AI guide of enterprise exceeding $12.5 billion, positioning the corporate for continued progress.
Supply: Investor Presentation
Progress Prospects
IBM has engineered a profitable turnaround over the previous few years, and indicators are rising that it’s gaining traction.
Its precedence is to turn out to be a pacesetter in synthetic intelligence and hybrid cloud options. It has invested aggressively in these areas, such because the $34 billion acquisition of Pink Hat in 2019.
IBM sees the hybrid cloud as a $1 trillion market and its most important alternative to return to progress sooner or later.
In 2023, IBM continued its behavior of regularly tuck-in acquisitions. It acquired software program firm Apptio for $4.6 billion, increasing its AI choices. The corporate adopted that up with the acquisitions of StreamSets and webMethods. Underneath the current CEO, IBM has acquired 30+ firms.
IBM forecasts income progress within the mid-single-digits and free money circulation. We anticipate 5% EPS progress over the subsequent 5 years.
Supply: Investor Presentation
Aggressive Benefits & Recession Efficiency
IBM enjoys significant aggressive benefits, primarily its trade management place and scale. Its aggressive energy lies in its model, entrenched buyer relationships, and in depth patent portfolio. IBM can be the market chief in mainframe computer systems, with 90% market share and little competitors.
IBM receives blended critiques on its efficiency through the recession. As a worldwide expertise firm, it’s uncovered to the fluctuations of the broader financial system.
For instance, in 2020, the corporate’s income and earnings per share declined as the worldwide financial system fell right into a recession because of the coronavirus pandemic.
That mentioned, IBM carried out comparatively nicely within the Nice Recession of 2008-2009. IBM’s efficiency throughout that recession is listed under:
- 2008 earnings-per-share: $8.93
- 2009 earnings-per-share: $10.01 (12% enhance)
- 2010 earnings-per-share: $11.52 (15% enhance)
- 2011 earnings-per-share: $13.06 (13% enhance)
It’s spectacular that IBM grew its earnings-per-share annually through the Nice Recession. Furthermore, the dividend saved growing.
Whereas the corporate’s efficiency through the recession was weaker in 2020, it remained extremely worthwhile, permitting it to maintain its dividend enhance streak alive.
Valuation & Anticipated Returns
Primarily based on our 2026 earnings-per-share estimate of $12.40 And the present inventory value of $256, IBM shares commerce at a price-to-earnings ratio of 20.6x.
The inventory trades above our honest worth P/E estimate of 18.0. A declining valuation a number of might scale back annual returns by 4% over the subsequent 5 years, suggesting the inventory is overvalued proper now.
These adverse returns may very well be offset by earnings-per-share progress and dividends. As beforehand talked about, we anticipate 5% annual EPS progress via 2031.
As well as, the inventory has a present dividend yield of two.6%. Over the subsequent 5 years, we estimate complete returns at 3.6% per yr.
The inventory value has risen rapidly on account of higher efficiency and AI optimism, and it’s now almost a decade excessive. The low price of return is because of the present overvaluation of the shares.
Ultimate Ideas
In 2021, IBM was inducted into the celebrated Dividend Aristocrats checklist. Attributable to its regular progress and powerful free money circulation, IBM has continued to lift its dividend annually.
IBM’s monetary efficiency is enhancing, and the corporate is deleveraging. It ought to have the ability to proceed elevating its dividend annually.
Given its share value rally over the previous yr, the inventory seems overvalued. The low anticipated returns make it a maintain, in our view.
If you’re desirous about discovering high-quality dividend progress shares appropriate for long-term funding, the next Certain Dividend databases can be helpful:
The foremost home inventory market indices are one other strong useful resource for locating funding concepts. Certain Dividend compiles the next inventory market databases and updates them month-to-month:
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