Using dividend and value investing guidelines as a filter, I have found International Business Machines Corporation (NYSE:IBM) to be a slightly overvalued stock that has strong appeal to income investors.
IBM's profitability metrics are strong with consistently stellar ROE and ROIC - ranging 69-100% and 21-32.5%, respectively - over the past six years with strong numbers spanning the decades before that. While revenue and earnings have been declining due to the company's strategic shift, there is a good reason to believe that the business will begin to enjoy growth in the near future as the company has been delivering on its key objectives. This sentiment was echoed by CEO Virginia Rometty in the company's most recent annual report:
