1. International Business Machines Corporation (NYSE:IBM)
Dividend Yield as of January 25: 4.80%
Number of Hedge Fund Holders: 41
Number of Years of Consecutive Dividend Increases: 26
International Business Machines Corporation (NYSE:IBM), a multinational technology corporation, is one of the most notable dividend aristocrats. International Business Machines Corporation (NYSE:IBM) has boosted its dividend payouts consecutively for 26 years.
On October 26, International Business Machines Corporation (NYSE:IBM) declared a $1.64 per share quarterly dividend, in line with previous, which was paid on December 10.
Evercore ISI analyst Amit Daryanani on January 25 said that International Business Machines Corporation (NYSE:IBM) reported “impressive” December quarter revenue and EPS that beat Street consensus, highlighted by about 5% growth in constant currency across both consulting and software. The analyst kept an In Line rating and a $140 price target on the International Business Machines Corporation (NYSE:IBM) stock.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 41 funds reported owning stakes in International Business Machines Corporation (NYSE:IBM), equaling $1.40 billion. Arrowstreet Capital is one of the largest International Business Machines Corporation (NYSE:IBM) stakeholders, with 2.8 million shares worth $398.1 million.
Here is what St. James Investment Company has to say about International Business Machines Corporation (NYSE:IBM) in its Q4 2021 investor letter:
“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.
One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of
time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)
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