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Dogs of the Dow 2023: 5 Dividend Stocks to Watch

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International Business Machines

  • Market value: $132.3 billion
  • Dividend yield: 4.5%

A strong third-quarter earnings report from International Business Machines (IBM (opens in new tab), $147.64) in October sent shares up 6%. Although welcome, it feels like Lucy might be yanking the football from Charlie Brown. Again. We’ve been here before. IBM has been in the doghouse since 2016. That’s a lot of yield for investors, but not much growth. Shares of IBM, at about $147, are still below where they started 2018. Hey, they don’t call them the Dogs of the Dow for nothing.

Keep in mind that a decade ago, revenues at IBM were $105 billion, and last year they were $57 billion. It’s not that they’re caught up selling obsolescing “Big Iron” from a generation ago, but rather shedding lots of businesses and defining their core which now consists of software, consulting and IT infrastructure. There’s some chatter that its IT infrastructure group, which accounts for about 25% of total revenue, could be divested, which would take a good chunk out of the $61 billion in 2023 forecasted revenues.

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