IBM Stock Looks Cheap Here

If you were thinking about investing in it, IBM (NYSE:IBM) stock looks fairly cheap right now. Its dividend yield is now very high at 4.6%, assuming its $6.48 annual rate stays unchanged. And now that IBM’s $34 billion purchase of Red Hat has closed, the dividend is looking even more secure.

In a presentation to analysts on Aug. 2, IBM showed that Red Hat would raise IBM’s free cash flow by about half a billion dollars in 2020 and $1 billion in 2021, after interest costs from the purchase. This is important, since as I pointed out in my previous article on IBM, the company has stopped its buyback program in order to pay down the acquisition debt and maintain the dividend.

Source: InvestorPlace

Related Articles:
- High-Yield Managed Distribution Policy Funds
- 5 Blue Chip Dividend Stocks For When the Chips Are Down
- 6 Dividend Stocks With A Good Yield And Growth Balance
- 14 Investments That Pay Monthly Dividends
- 4 Dividend Stocks To Build Your Future Security