Technology Sector Ideas

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>>> International Business Machine (IBM)



https://www.thestreet.com/story/13646215/7/10-best-dividend-stocks-to-own-now-for-a-safe-retirement.html



IBM is one of the most widely recognized names in technology anywhere in the world. By its own declaration, IBM is unique. It claims the distinction as the only company in the industry that has reinvented itself through multiple technology eras and economic cycles. This is why it is one of Warren Buffett's top high-yield dividend stocks. Here is how the current version of the company is configured.

Global operations fit into five main categories and comprise IBM's $82 billion revenues: Global Technology Services (39%), Global Business Services (21%), Software (28%), Systems Hardware (9%), and Global Financing (2%) and Other (1%).

It is accurate to state that IBM's global reach is so wide that IBM products and services reach virtually everyone in the developed world. This includes the 49% in the Americas Group, 32% in the Europe/Middle East/Africa and 21% in Asia/Pacific area.

Technology is one of the most rapidly changing industries in the world today and this is only likely to accelerate in the future. In recent years, the availability of venture and other forms of startup capital has aided in the acceleration of innovation.

Most companies must attract and retain the human talent in order to keep pace. Often this is accomplished by starting in-house venture funding or by acquiring promising young companies. Over the years IBM has been consistently successful in attracting bright talent to help in the ever-reinventing process.

IBM started paying dividends as far back as 1913 and increased its dividend in each of the last 20 years. Over the last 10 years, the annual growth in dividends has averaged 16.7% and 15% over the last five. No wonder IBM is one of Warren Buffett's favorite dividend stocks. And the current payout ratio is still just 40%.

Through it's current $5.20 dividend, investors are offered a 3.5% yield. The current consensus for 2.5% growth suggests that IBM has reached yet another plateau. Nonetheless, with operating margins of 20%, $17 billion in operating cash flow against $33 billion in debt, IBM dividends can grow for a long time.

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