Out Fox The $treet

IBM led the world in patents for the 26th consecutive year. The dividend yield sits at the highest level in over a decade at 5.2%. The stock continues to trade at only 8.5x forward EPS estimates. The Red Hat deal provides a potential catalyst with a new CEO. International Business Machines   ( IBM ) continues to lead the country in technology development that doesn't actually lead to meaningful revenue growth. The technology company does generate enough to reward investors with a 5%+ dividend yield and a stock trading at only $120 with a potential big catalyst from the Red Hat merger. My   investment thesis   remains bullish on this dip to $120. Read the full article on Seeking Alpha.  Disclosure: Long IBM. Please review the disclaimer page for more details.   

Anybody following my research knows that IBM (IBM) has been an attractive stock to own below $150 as the market missed the turnaround story and shift into new technologies like blockchain. The company issued a long-term model today at an Investor Briefing that should help the stock gain from here at $155.

Summary IBM is set to report another quarter of declining results. The stock remains cheap and is supported by stock buybacks that haven't been effective. IBM is generally cheap and pays a solid 3.2% dividend for investors willing to wait out the rebound.    When last writing about the investment potential of IBM (NYSE: IBM ) , I wrote two articles ( here , here ) attempting to get investors to load up on the stock on the dip to $150 due to strong yields. At the time, the stock was down considerably and trading at multi-year lows. The investment community had become exceptionally bearish on IBM despite a strong stock buyback program and the profits and cash flow to support a higher valuation.  Read the full article on Seeking Alpha.  Disclosure: Long IBM. Please read the disclaimer page for more details.