International Business Machines (IBM) will raise its quarterly dividend by 0.6 percent to $1.63 per share in 2020. This marks the 25th consecutive year of annual dividend increases by the technology company. The 0.6 percent hike also is the smallest by the technology giant in the last 25 years.

The next dividend is payable June 10, 2020 to stockholders of record as of May 8, 2020. A new annualized dividend rate of  $6.52 per share yields 5.4% at a stock price of $121.87.

Dividend growth has been slowing in the last four years, with smaller increases every year. The last time IBM hiked its dividend by double digits was in 2015 with a 18.2 percent increase. This year's dividend hike is the smallest since IBM started hiking its dividend annually back in 1996. The company will now pay an estimated annual dividend of $5.8 billion to its shareholders, putting the company in the top-20 of biggest dividend payers in the United States.

With 25 consecutive years of dividend increases IBM is a rarity in the technology sector with most Dividend Aristocrats coming from other sectors such as Energy, Consumer Staples and Health Care. Other big technology companies such as Apple and Microsoft are also raising their dividend every year but do not have a strong dividend history like IBM. Microsoft now has hiked its dividend 17 consecutive years and Apple has boosted its dividend for 7 consecutive years.

International Business Machines Corporation (IBM) is a hardware, software and services company  transforming into a cognitive solutions and cloud platform company. IBM offers its clients integrated solutions and products that leverage: data, information technology, deep expertise in industries and business processes, and a broad ecosystem of partners and alliances. The company’s operations consist of five business segments: Cognitive Solutions, Global Business Services, Technology Services & Cloud Platforms, Systems and Global Financing. IBM has paid consecutive quarterly dividends since 1916.