Is IBM Still a Great Dividend Stock?
If you had asked me for a great dividend stock ten years ago, I wouldn't even have paused to think about it. International Business Machines (NYSE: IBM) was the obvious choice for income investors back then.
IBM was a superstar in 2012. Other companies were lined up to copy Big Blue's successful business plan, serving as a one-stop-shop for every information technology requirement your business might face. The dividend yield wasn't extremely high. At 1.7%, it was actually among the six least generous payouts on the Dow Jones Industrial Average at the time.
But IBM's commitment to a high-quality dividend was unquestioned, and kind of a big deal. Furthermore, the company powered those rising payouts from ample cash flows. The only reason why the yield wasn't more impressive was that IBM's stock price had posted massive gains from 1995 to 2012. Of all the problems an investment could face, that's a pretty nice one.
Source Fool.com
