Monday, October 29, 2012

IBM: Buy IBM For Likely Upside Driven By Dividend Growth

Buy IBM For Likely Upside Driven By Dividend Growth
by Stock Gamer

Shares of International Business Machine (IBM) have returned only 3.72% over the past 12 months. At $193.27 per share, the stock is trading at the mid-point of the 52-week trading range between $177.06 and $211.79 and offers a dividend yield at 1.8%. According to Capital IQ, sell-side analysts are generally not very bullish on the stock. Of the total 33 ratings, there are 8 buys, 5 outperforms, 19 holds, and 1 underperform. However, I am of the view that despite trading near the fair value, IBM remains a quality dividend investment given the robust dividend growth potential. In this article, I will elaborate the analysis that supports my view. read more »

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