Even the great ones don't get it right every time, and Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) Chairman and CEO Warren Buffett is certainly no exception. While Berkshire Hathaway's track record is nothing short of legendary, Buffett's collection of investments contains one noteworthy black-eye for the billionaire octogenarian -- enterprise tech turnaround play IBM (NYSE:IBM).
At present, IBM trades at an absurdly cheap 9.6 times trailing earnings. What's more, IBM's dividend yield tops 4%, which could make its stock particularly enticing for income-seeking investors. For context, the S&P 500's price-to-earnings ratio currently sits at 21 times, and the index's 2.2% dividend yield similarly falls well short of IBM's payouts. The key point here is that IBM's outlook does include some business risk, and any investor considering its stock must seriously weigh the risk-reward equation before purchasing. However, as Buffett reiterated in his recent letter to Berkshire shareholders, IBM's shares today offer a tremendous value for investors who believe the firm will indeed survive its business model transition.
Source: Motley Fool
Related Articles:
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the ...
-
With interest rates stuck below 1%, finding income in today's market can be difficult. Therefore it makes sense for income investors to ...
-
These stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sust...
-
Unfortunately, some investors that are new to dividend stocks end up chasing the highest yield stocks they can find and end up getting burne...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.