Forget Intel, IBM Is a Better Dividend Stock
Intel (NASDAQ: INTC) has been a much stronger investment than IBM (NYSE: IBM) over the past decade. Intel's stock rallied roughly 180%, buoyed by steady sales of its CPUs for PCs and data centers. At the same time, IBM's stock dipped nearly 10%, as the company struggled to offset the slowdown of its legacy businesses with its higher-growth cloud-based businesses.
Intel might still seem like the stronger overall investment, while IBM's forward dividend yield of 5.5% -- which is much higher than Intel's 2.2% yield -- might resemble a high-yield trap. Yet past performance never guarantees future gains, and a fresh look at both tech giants reveals that IBM might actually be a better dividend stock.
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Source Fool.com
