Stock Update (NYSE:IBM): Why Investors Likely Will Ignore the IBM Dividend Hike

[at 24/7 Wall St.] – Unfortunately for IBM, a broken business model and a stock that is still up too much from its lows is muting the gain from an announced dividend hike. Read more on this. International Business Machines Corporation (IBM) , valued at $143.86B, began trading this morning at $148.65. Looking at the stock, its one day range is $147.11 to $149.77 and has traded between $116.90 and $176.30 over the past year. IBM (IBM) shares are currently priced at 11.00x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 10.18x earnings multiple for the same period. And for income investors, the company pays shareholders $5.20 per share annually in dividends, yielding 3.50%. According to a consensus of 19 analysts, the earnings estimate of $2.88 per share would be $0.96 worse than the year-ago quarter and a $0.55 sequential decrease. The full-year EPS estimate is $13.53 which would be a $1.39 setback than last year’s full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $20.04 Billion. If reported, that would be a 3.70% decrease over the year-ago quarter. More recently, Morgan Stanley upgraded IBM from Equal-Weight to Overweight (Feb 18, 2016). Previously, JMP Securities Initiated IBM at to Mkt Outperform. The average price target for IBM shares by the analysts covering it is $142.50, which is 4.14% below where the stock opened. See more in (NYSE:IBM) Similar Articles: Stock Update (NYSE:IBM): What to Expect From IBM Earnings (IBM) Stock Update: International Business Machines Corporation (NYSE:IBM) – Deal Brings IBM and Salesforce.com Closer Together Market Update (NYSE:IBM): IBM Needs To Get Investors Ready For A Hard, Brave Crossover To A Cloud Model