Is IBM Common Stock (NYSE: IBM) a Sell after June quarter results?

IBM Common Stock (NYSE: IBM ) is in the headlines after the company posted a strong quarterly report. However, analysts think that IBM results were lifted amid a healthy growth in the mainframe business.

But this growth is not sustainable. Deutsche Bank analyst Sherri Scribner believes that there are still doubts on IBM ’s growth trajectory. She still sees “secular headwinds” for IBM . The analyst is also worried about declines in IBM ’s “Cognitive Solutions”. Deutsche Bank decreased its price target for IBM to $150 from $160 following the quarterly results.

Huge dividend IBM

Investors in IBM can expect a huge dividend payment. Based on the recent analysts' consensus the stock now has one of the highest dividend returns of the American market. For this year most of the analysts expect a dividend of 6,15 USD per share. Thus the dividend yield equals 4,26 percent. The average dividend yield of the hardware & equipment companies is a moderate 1 percent.

Dividend returns IBM

For this year IBM 's revenue will be around 80,33 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2017's revenue of 79,14 billion USD.

Historical revenues and results IBM plus estimates 2018

The analysts expect for 2018 a net profit of 12,68 billion USD. According to most of the analysts the company will have a profit per share for this book year of 13,81 USD. So the price/earnings-ratio equals 10,46.

Most recent target prices around 171 USD

Independent Research, ABN AMRO and Morgan Stanley recently provided recommendations for the stock.

IBM 's market capitalization is based on the number of outstanding shares around 136,66 billion USD.

At 15.58 the stock trades 0,3 percent lower at 144,48 USD.

Historical stock prices IBM period 2007-2018

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