Tuesday, October 30, 2018

Recent Buy --- IBM




Today I initiated a position in IBM.

  • IBM:  25 shares @ $115.74 --- Yield  5.43%

Total capital invested is $2900.12 and will add $157 to my yearly dividends. 

I should also note that GE effectively eliminated its dividend. It's new yield is close to ZERO. I have 100 shares or so and will lose around $48 in yearly dividends. Glad that position is small. I might buy a few hundred shares if the stock drops to around $5.

DEFY MEDIOCRITY

10 comments:

  1. Not a bad place to put down a first stake. I have a small position in IBM at around $142 I believe. I may add around $100 if it gets there on more market softness, which is entirely possible given the pre-election environment.

    ReplyDelete
    Replies
    1. DWC,

      I have owned shares in the past, but this is the lowest price I've ever purchased at. The yield is very high and if IBM doesn't figure out its cloud business soon, I suspect the price will fall quite a bit more.

      MDP

      Delete
  2. 5% yield looking very atractive even tough I did not like IBM to much. Fundamentaly this company has the weakest balance sheet compared to companies like CSCO, INTC, MSFT .

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    Replies
    1. P2035,

      IBM is definitely behind the three you mentioned and its stock performed has reflected that the past few years.

      MDP

      Delete
  3. MDP -

    They are on my watch list as well, weird seeing them this low at such a high yield.

    -Lanny

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    Replies
    1. Lanny,

      I hear you. I remember IBM sporting a 2% yield around 2013-2014. The price keeps falling and the dividend keeps rising. We'll see if the dividend growth continues.

      MDP

      Delete
  4. MDP,

    Can't say I noticed IBM climb that high in terms of yield. Incredible. It had fallen off my radar some time ago, though when Berkshire picked some up I've had it on the peripheries of my mind. Hope the purchase holds up for you.

    Yeah, definitely a shame about GE. That company has been "managed" right into the ground....

    Take care,
    Ryan

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    Replies
    1. Ryan,

      GE is toast I'm afraid. I will take a closely look at it in the future if it falls down around $5. Hard to believe this company can't perform during the biggest bull market in history. That's why we diversify

      MDP

      Delete
  5. Looks like a great buy! Yield was around 3,5-4,0 % last time I was thinking about buying IBM, which looked really good at the time.

    DD

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    Replies
    1. DD,

      Yeah I remember the yield being around 2% in 2014. It just goes to show how dramatic price/yield swings can be even with the bluest of blue chips.

      MDP

      Delete