IBM: Long-Term Model
IBM outlined a plan for high single-digit EPS growth. The stock trades at about 11x EPS estimates of $14 for 2018.
In the meantime, the tech giant offers a 3.8% dividend yield and the downside protection of stock buybacks. A big question exists whether IBM can hit these targets. The analyst community doesn't think so with a 2019 EPS target of $14.19 as revenue growth is still non-existent, but finally positive.
IBM remains a core holding for a conservative portfolio looking for net payout yields and a potential catalyst for the stock this year.
Disclosure: Long IBM. Please review the disclaimer page for more details.