IBM (NYSE:IBM) declared a quarterly dividend on Tuesday, October 30th, RTT News reports. Shareholders of record on Friday, November 9th will be paid a dividend of 1.57 per share by the technology company on Monday, December 10th. This represents a $6.28 dividend on an annualized basis and a yield of 5.10%. The ex-dividend date of this dividend is Thursday, November 8th.
IBM has increased its dividend by an average of 11.6% annually over the last three years and has increased its dividend annually for the last 18 consecutive years. IBM has a payout ratio of 45.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect IBM to earn $14.02 per share next year, which means the company should continue to be able to cover its $6.28 annual dividend with an expected future payout ratio of 44.8%.
NYSE IBM opened at $123.12 on Wednesday. IBM has a 52 week low of $114.09 and a 52 week high of $171.13. The stock has a market cap of $105.12 billion, a PE ratio of 8.92, a price-to-earnings-growth ratio of 1.69 and a beta of 1.18. The company has a quick ratio of 1.26, a current ratio of 1.31 and a debt-to-equity ratio of 1.81.
IBM announced that its board has approved a stock buyback plan on Tuesday, October 30th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the technology company to buy up to 3.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its shares are undervalued.
IBM has been the subject of several research reports. UBS Group raised shares of IBM from a “neutral” rating to a “buy” rating and upped their price target for the company from $160.00 to $180.00 in a research report on Wednesday, September 26th. Zacks Investment Research lowered shares of IBM from a “buy” rating to a “hold” rating in a research report on Wednesday, September 19th. Stifel Nicolaus reduced their price target on shares of IBM from $182.00 to $178.00 and set a “buy” rating for the company in a research report on Thursday, July 19th. Morgan Stanley reduced their price target on shares of IBM from $185.00 to $168.00 and set an “overweight” rating for the company in a research report on Wednesday, October 17th. Finally, Argus lowered shares of IBM from a “buy” rating to a “hold” rating in a research report on Thursday, October 18th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and ten have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $165.02.
In other news, Director Sidney Taurel bought 4,311 shares of IBM stock in a transaction that occurred on Wednesday, October 31st. The stock was bought at an average cost of $115.02 per share, with a total value of $495,851.22. Following the acquisition, the director now owns 19,987 shares of the company’s stock, valued at approximately $2,298,904.74. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Virginia M. Rometty bought 8,500 shares of IBM stock in a transaction that occurred on Friday, November 2nd. The stock was purchased at an average cost of $117.51 per share, with a total value of $998,835.00. Following the completion of the acquisition, the chairman now directly owns 11,368 shares in the company, valued at approximately $1,335,853.68. The disclosure for this purchase can be found here. Corporate insiders own 0.17% of the company’s stock.
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IBM Company Profile
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.
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