International Business Machines Corporation (NYSE:IBM) is a computer company with a long history. Not only has it frequently been at the forefront of innovations like the IBM PC, but also it has often been written off as dead when the computing world changed. So far, IBM has been able to bring itself back to a leadership position by reinventing itself. Currently, it is in the middle of yet another reinvention stage. Is it succeeding, and what do its current efforts mean for Dividend Growth investors who might be interested in its very attractive dividend?
Why Invest in IBM?
What do DG investors get from investing in IBM? Some investors will look at the dividend of $5.60, which works out to a current yield around 3.45%, and want IBM for that alone. But unless the dividend can be sustained, and unless earnings grow to support growing the dividend over time, a large dividend doesn't make a stock a good DGI stock.
