May 7, 2016

A Close Look at IBM's Dividend Potential

Big Blue's dividend growth has slowed as the company works to transform itself, but the stock is still extremely attractive for dividend investors.



For 100 consecutive years, International Business Machines (NYSE:IBM) has paid shareholders a dividend, and for 21 consecutive years, the company has increased that dividend. The latest dividend increase came in April, boosting IBM's quarterly payout by 7.7% to $1.40 per share. It was a smaller increase than IBM investors have enjoyed in recent years, but given the company's ongoing transformation, which has put pressure on earnings, a smaller dividend hike shouldn't be too surprising.

With IBM stock already offering an enticing 3.9% yield, and with the company suffering from a decline in profits, what kind of dividend growth should investors expect going forward? 

Let's dive in and find out...


Source: The Motley Fool