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
-
If you own solid, high-yield dividend stocks, you can be virtually certain you’ll get paid every quarter regardless of what happens with COV...
-
When it comes to a socially-distanced 2020, investors haven’t embraced AT&T (NYSE:T). But is now a good time to reconnect with a doggish...
-
Insider buying indicates that an executive of the company feels good about the company’s future. Legendary investor, Peter Lynch said, “insi...
-
In a volatile economy, dividend stocks have always proven to be a safe play. These stable investments can offset losses and help you generat...
-
The price of oil bounded higher today. The U.S. oil price benchmark WTI was up more than 9% by 11:30 a.m. EST on Monday, fueled by news that...
-
My quick guidance for you is to think about building a portfolio for growth stocks with a base of dependable sector companies. Then the seco...
-
Picking a high-paying dividend stock to buy is easy. The hard part is finding an income investment where the dividend isn't at risk, tha...
-
Despite all of that potential malaise, JPMorgan stock analysts are holding steady on their calls for these three dividend stocks, yielding s...
-
This security had a 4.73X interest coverage in Q2, vs. 4.39 in Q1 2020. Its 2023 Senior Notes now yield 7.19% and go ex-dividend for their s...
-
Investors have to look a little harder for high dividend yields. But this does not necessarily mean investors need to sacrifice dividend saf...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.