Dow Dividend Checkup: IBM
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics across the investing world.
Over the next several weeks we'll be looking at each of the components of the Dow Jones Industrial Average and subjecting them to a dividend checkup. Today, we're looking at IBM. IBM, of course, is one of the leading providers of IT products and services in the world. Its share price has been doing well of late. It's up over 20% during the past 12 months, and it's up about 6% for the year, which is slightly higher than the Dow as a whole. Bank of America, which is up approximately 42% for the year is the Dow leader for 2012 so far. IBM has recently raised its dividend by 13%, which marks the 17th year in a row that it has raised its dividend. Its yield is 1.8% compared to the Dow average of 2.9%. Coca-Cola, another blue chip favorite of Warren Buffett's Berkshire Hathaway, pays out 2.7%. IBM's future looks promising. It has been making key investments in emerging markets and business analytics. Macroeconomic factors could slow the growth of its business, however.
IBM is a fairly attractive income-generating stock right now. If you're interested in learning more about some additional high-yielding stocks, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.
At the time this article was published John Reevesowns shares of Berkshire Hathaway. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, International Business Machines, and Coca-Cola.Motley Fool newsletter services recommendBerkshire Hathaway and Coca-Cola. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.