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Wednesday, January 28, 2015

Recent Buy: IBM

Jan 27, 2015: Bought 16 shares of IBM at $154.04 per share.

16 shares of IBM adds $70.40 to DivGro's projected annual dividend income, raising the total to $4,956.10. One of my goals for 2015 is to increase DivGro's projected annual dividend income to $7,500. I have a long way to go...

To see why I added shares to my IBM holding, please read this article at Seeking Alpha.

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16 comments :

  1. ADDJanuary 29, 2015 at 4:24 AM

    Almost $5,000 worth of passive income coming in is awesome! Keep up the great work.

    ReplyDelete
    Replies
    1. FerdiSJanuary 29, 2015 at 6:52 AM

      Thanks, American Dividend Dream! As mentioned, my goal of $7,500 for 2015 still is a long way off...

      Delete
  2. UnknownJanuary 29, 2015 at 6:27 AM

    FerdiS,

    Great analysis on IBM - I agree with you in that, with their intellectual property, they should be able to reinvent themselves again. I bought some shares too, a few days ago - that 14.6% 5-year dividend growth excites me!

    DL

    ReplyDelete
    Replies
    1. FerdiSJanuary 29, 2015 at 6:55 AM

      HI DL -- thanks for stopping by! There are some interesting counterpoint comments over at Seeking Alpha, though, I think, many are from non-dividend growth investors. They seem to think IBM is a dying company. I beg to differ and believe the company will reinvent itself again...

      Delete
  3. writing2realityJanuary 29, 2015 at 8:26 AM

    I like IBM and wouldn't mind doubling my position with them. They still produce a ton of cash flow and should be able to pivot as a result and continue to reward shareholders.

    ReplyDelete
    Replies
    1. FerdiSJanuary 29, 2015 at 10:13 AM

      I agree -- I think IBM's woes are temporary and, as long as you're patient, I believe the rewards will come in the near future. Meanwhile, the dividend and dividend growth is solid.

      Delete
  4. Dividend HustlerJanuary 29, 2015 at 9:26 AM

    Great purchase bud. Great company. Wouldn't mind adding myself as I bought at 164. Keep up the great work and I enjoy reading your posts my friend.
    Take care.

    ReplyDelete
    Replies
    1. FerdiSJanuary 29, 2015 at 10:11 AM

      Thanks, Dividend Hustler -- I agree, IBM is a great company! $164 is a better entry point than my first purchase, though you could also benefit from cost averaging down.

      Cheers
      FerdiS

      Delete
  5. RyanJanuary 29, 2015 at 4:26 PM

    Great purchase and analysis, thanks for sharing! I'm hoping this lingers around these prices or lower for a little while so I have the change to average down again, best wishes!

    ReplyDelete
    Replies
    1. FerdiSJanuary 30, 2015 at 7:39 AM

      You're welcome, Ryan -- IBM's still trading right around where I picked up this batch of shares. Good luck!

      Delete
  6. Dividend MantraJanuary 29, 2015 at 11:22 PM

    Ferdi,

    Nice purchase here. I happen to think IBM is one of the best and most obvious values on the market. I'm not particularly interested in increasing my rather small position due to my desire to remain lightly exposed to tech, but I'd be all over it right now if I didn't already own those shares.

    Best regards!

    ReplyDelete
    Replies
    1. FerdiSJanuary 30, 2015 at 7:44 AM

      Hi Jason -- of course I agree with you! In fact, I read your "Recent Buy" article on IBM of a few months ago, which was one of the reasons I felt that I wanted to increase my holdings. I'm in the tech business so I'm OK with investing more heavily in tech than you do. For example, I still own INTC and MSFT as well.

      Take care!

      Delete
  7. BeSmartRichJanuary 31, 2015 at 4:45 AM

    Solid analysis and great purchase in great company IBM. It is very expensive for me to add positions to US stocks now as Canadian dollars have dipped significantly but it is definitely on my watch list.

    Cheers,

    BeSmartRich

    ReplyDelete
    Replies
    1. FerdiSJanuary 31, 2015 at 6:47 AM

      Hi BeSmartRich -- thanks for stopping by and commenting. Yes, the US dollar has really climbed parabolically against other currencies. Who could have foreseen that! If you do own US dividend paying stocks already, that would be very beneficial to you!

      Cheers
      FerdiS

      Delete
  8. Money UnbindingFebruary 2, 2015 at 2:21 PM

    I second your decision. I am planning to purchase some shares soon. Some worried about stock repurchase, but even without stock repurchase, the stock EPS is still decent and payout ratio is still valid.

    ReplyDelete
    Replies
    1. FerdiSFebruary 3, 2015 at 1:11 AM

      Thanks for commenting, Money Unbinding -- as long as stock repurchases are done when the stock is trading at or below fair value, I'm not too concerned. Of course, one wants to see that such purchases are done with FCF, not with borrowed money.

      Take care and good luck!

      Delete

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