Understanding IBM Stock Splits and Performance

IBM stock splits have played a significant role in shaping the company's history, with the first split occurring in 1961. IBM's stock price was around $3.50 at that time.

IBM's stock splits have had a direct impact on the company's performance, making its stock more accessible to individual investors. This is evident in the company's history, where multiple stock splits have been implemented to make its stock more affordable.

IBM's stock split in 1970, for example, saw the company's stock price decrease to around $1.75. This made it easier for investors to buy into the company, potentially increasing its market value.

The benefits of IBM's stock splits are also reflected in the company's performance, with each split leading to an increase in the number of outstanding shares. This can be seen in the company's history, where the number of outstanding shares has consistently increased following each stock split.

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IBM has made many stock splits over its history, with the first one occurring on January 16, 1946, when the stock split 5 for 4.

In the 1950s and 1960s, IBM's stock split strategy was gradual, reflecting appreciation in the share price fairly generally. The company's conservative nature is evident in the many small 5-for-4 splits that occurred during this period.

Here are some of the notable stock splits in IBM's history:

IBM's share price was as high as $650 per share in the 1960s, and the company's stock splits typically kept the share price in triple-digit territory.

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IBM's stock split history is a fascinating case study. The company has made many stock splits over its history, with some notable patterns emerging.

In the 1950s and 1960s, IBM tended to have gradual and conservative stock splits, with multiple small 5-for-4 splits. This approach allowed the company to maintain a high share price, with IBM trading as high as $650 per share in the 1960s.

IBM's stock split strategy shifted in the 1990s, with the company adopting a more conventional approach. When IBM's stock threatened to cross the $200 per share mark, 2-for-1 splits were used to bring the share price back down to the high double-digits.

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Here are some key dates in IBM's stock split history:

IBM's stock split history has been noticeably barren since the turn of the century, with the company's share price failing to gain much traction. This has led to speculation that IBM may not split its stock again anytime soon.

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IBM's stock split is a big deal, with 2,300 shareholders out of 359,495 total approving the eleventh split in the company's 57 years. This split will give holders of IBM's 60 million shares one additional share for each one they hold, making it the biggest stock distribution in U.S. history.

The split will help keep per-share prices within reach of ordinary investors, as IBM's share price had climbed from $320 to $677.50 in the past 20 months. IBM will still be competing for top-price honors with Corning Glass Works, which closed last week at $362.

The split is not just about making the stock more affordable, it's also about growth. As a result of splits, a 100-share investment in 1914 has grown to 59,320 shares worth more than $20 million. This is a testament to the power of stock splits in fueling growth.

IBM's stock jumped $63 between the board's January proposal of the split and last week's stockholders' meeting, and then another $10.50 in four days to close the week at a record $688, an extraordinary 59 times 1967 earnings.

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IBM Stock Performance has been a wild ride over the years. The stock split in 2014 didn't seem to have a significant impact on its performance, as it continued to trade in the $150-$200 range until 2020.

IBM's stock price increased by 20% in 2020, reaching an all-time high of $145.17 per share. This was largely due to the company's strong earnings and revenue growth during that period.

The COVID-19 pandemic had a significant impact on IBM's stock performance in 2020, with the stock price dropping by 10% in the first quarter. However, the company's strong performance in the second half of the year helped it recover some of those losses.

IBM's stock has been relatively stable in recent years, with a low volatility of 20% in 2022. This is a good sign for investors, as it indicates that the company's stock price is less likely to experience sudden and drastic fluctuations.

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IBM's stock history is a tale of frequent splits, with the company splitting a total of seven times between 1964 and 1999. This led to a staggering growth in shares, from 100 to 7,500, for a buy-and-hold investor who held on through the years.

The IBM stock split history is laid out in the following table:

This impressive growth ultimately translated to a substantial investment return, with the 100-share investment growing to approximately $1,125,000 by the turn of the new millennium.

IBM has a 63-year stock split history that's worth taking a closer look at. IBM's stock splits have been a key factor in its growth, with the company making 11 stock splits between 1946 and 1999. IBM's market capitalization is currently at $242.137 billion, with revenue of $62.753 billion.

IBM's stock splits have been quite frequent, with the company making three stock splits in the 1960s alone. The first stock split in 1964 was a 5:4 split, followed by a 3:2 split in 1966 and a 2:1 split in 1968. This was followed by another four stock splits before the turn of the new millennium.

The impact of IBM's stock splits has been significant, with a buy-and-hold investor who held 100 shares before the first stock split owning 7,500 shares by the turn of the new millennium. Using the IBM share price today, that 100 share investment would have grown to approximately $1,125,000.

Here are the dates of some of IBM's notable stock splits:

IBM's stock dividend was a notable 4.50% at the time of our research, which is quite a payout for a technology company.

The sustainability of the dividend, however, is more in question due to the high payout ratio of 295%, suggesting that management is stretched in maintaining the dividend at the expense of reinvesting in the business.

IBM's dividend payout ratio is an astonishing 295%, indicating that cash flows are being used to pay shareholders versus invest in R&D crucial to drive revenues in the future.

Investors hoping for a bullish IBM stock price forecast will need to peg their hopes to stabilizing revenues, new partnerships, and future innovations.

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IBM's stock dividend at the time of our research was 4.50%, but the payout ratio of 295% raises concerns about the sustainability of the dividend.

The dividend payout ratio is a key metric to consider when evaluating the health of a company's dividend.

IBM's annual dividends of $4.35 last year amount to a mere 0.7% return on investment, which is lower than other manufacturing stocks and bank savings accounts.