IBM shares drop into oversold territory as selling intensifies

On Thursday, July 24, 2025, International Business Machines Corp., commonly known as IBM, saw its stock trading drop significantly, entering into an oversold territory. The shares of IBM traded as low as $252.75 per share, indicating a substantial selling pressure on the stock. This decline has resulted in the stock's relative strength index (RSI) falling to 28.1, which is considerably below the average RSI of 55.7 for the universe of dividend stocks covered by Dividend Channel. The RSI is a significant technical analysis indicator used to measure price momentum, with a reading below 30 defining oversold conditions. Many investors view this RSI reading as indicative of the stock being undervalued and suggest a potential buying opportunity, as the heavy selling pressure might be nearing exhaustion. By this measure, IBM is highlighted as a stock of interest, especially for dividend investors looking to identify viable investment options. Amidst this backdrop of volatility, IBM's annualized dividend currently stands at $6.72 per share, translating into an annual yield of approximately 2.38% based on its recent share price around $282.01. While dividends can fluctuate and are generally unpredictable, analyzing IBM’s historical dividend performance can provide valuable insights into whether the recent dividend is likely to continue in the future. The ongoing trends in IBM's stock prices, combined with its solid dividend reputation, make it a focal point for investors looking toward the technology sector, especially as the economy navigates through uncertain times.