IBM’s Dividend Yield Boosts Total Return to +5.7%
August 25, 2022
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IBM Intrinsic Value – INTERNATIONAL($NYSE:IBM): It’s been a tough year for stocks, but IBM has managed to eke out a small gain thanks to its healthy dividend yield. This dividend yield boost has helped IBM’s total return stay positive even as the stock price has been largely flat over the past year. Looking ahead, IBM’s strong Q2 results suggest that the company is weathering the current economic downturn fairly well. IBM’s diverse business lines are all seeing steady revenue growth, which bodes well for the company’s long-term prospects. So while IBM’s stock may not be the most exciting right now, the company’s solid fundamentals and healthy dividend make it a worthwhile hold for long-term investors.
On Wednesday, IBM’s stock opened at $134.9 and closed at $133.2. IBM has been a reliable dividend payer for many years, and its strong cash flow and balance sheet give it the ability to continue paying dividends even in tough economic times.
VI Analysis – IBM Intrinsic Value
The intrinsic value of a company’s stock reflects its long-term potential. The VI Line app makes it easy to analyze a company’s fundamentals and calculate its intrinsic value. Based on the company’s current fundamentals, the intrinsic value of INTERNATIONAL BUSINESS MACHINES stock is around $127.3.
However, the stock is currently trading at $133.2, which is 5% overvalued.
International Business Machines has been one of the best-performing stocks in the Dow Jones Industrial Average this year, and its dividend yield is a big reason why. IBM’s strong performance has been driven by solid growth in its cloud computing business. IBM’s dividend yield is also boosted by the company’s strong cash flow. Investors looking for a high-yielding stock with solid growth prospects should consider IBM.
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