Down 26%, Is IBM Stock the Smartest Dividend Stock to Buy for the Second Half of 2026?
Yahoo Finance ·
It's never good when a CEO admits, "This quarter we faltered." But that's the situation facing International Business Machines ( IBM +3.72% ) this week, as CEO Arvind Krishna made the rare acknowledgment in a letter to shareholders. Krishna's acknowledgment came as IBM issued preliminary earnings results for the second quarter, warning that sales were lower than anticipated as customers shifted spending away from IBM and into memory and storage products ahead of anticipated price increases. "These conditions require our teams to execute perfectly, and this quarter we faltered," he wrote. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall." IBM stock tumbled 25% -- the worst day in its 115-year history -- and is now down 26% so far in 2026. But remember, IBM stock had been on the rise before this week's disaster; shares were up 35% in 2025 on the strength of its mainframe and server business. It's also a reliable dividend stock, with a 3.1% yield that's far above average for tech stocks , and has increased the dividend for 31 consecutive years.
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