IBM Is Now a Slightly Better Dividend Stock

Tech giant International Business Machines (NYSE: IBM) has been undergoing a turnaround effort for the better part of a decade. The company has dumped legacy businesses, invested heavily in cloud computing and artificial intelligence, loaded up on debt to acquire software company Red Hat for $34 billion, and announced a spinoff of its $19 billion managed infrastructure services business.

IBM's strategy, which revolves around hybrid cloud computing, makes sense, and it has the potential to drive revenue and earnings growth in the years ahead. But to get to this point, IBM has subjected investors to years of revenue and earnings declines. The stock hasn't fared well, either. Shares of IBM are down around 33% from their all-time high.

Through all of this, IBM has kept growing its dividend. The company announced its latest increase on April 27, bringing its streak of annual dividend hikes to 26 years. The company has paid quarterly dividends uninterrupted since 1916, an incredible track record.

Source Fool.com