Recent Buy: International Business Machines Corporation (IBM)

ID-100426334 Recent Buy: International Business Machines Corporation (IBM)I increased my position with the purchase of more shares of International Business Machines Corporation (IBM)

20 shares @ $114.99 on 10/31/2018.

This increases my forward 12-month dividend income by $125.60 to a total of $6,836.04

I also updated my portfolio page to reflect the change.

 

 

 

My Thoughts

In my last post, I mentioned how Ownes & Minor Inc. (OMI) cut its dividend which forced me to sell all my shares of the company. This is what I did with the additional capital I had after the OMI sell.

Currently, IBM pays out a dividend of $6.28 a share for the year and has estimated adjusted earnings of $13.80 for this year. This gives a dividend payout ratio of 45%. The company sports a 5-year dividend growth rate of 12.3%. The most recently dividend increase was a lot less than the 5-year average at 4.7%. It is not great, but I will take that since it currently has a high dividend yield.

I was able to pick up shares at a good price and an even great dividend yield. Even though it has run up a little since this buy, but I still think that there is valued to be had.

The other stock buy with the recent sell OMI so make sure to follow me on Facebook and Twitter to get the next post about the second buy.

I find IBM to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $128.23. This means that IBM is 4.75% Undervalued Based on today’s price of $124.49 (11/28/2018).

 

IBM-stock Recent Buy: International Business Machines Corporation (IBM)

Source: Fastgraphs.com

 

What do you think of the company? Plan on owning it or already do? or why not?

 

Thanks for reading, and don’t forget to connect with me through Facebook and Twitter to see my latest buys.

 

Image by Sira Anamwong at FreeDigitalPhotos.net

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