It was 1991 when International Business Machines (IBM) launched and since then the company has gained reputation when talking about information technology. IBM has switched its focus to service and software from primarily being a hardware vendor.
The first quarter of IBM has been disappointing for investors because it marked the record of having the lowest revenue ever for the company in 5 years-that is 8 months straight with the business not having any increase in revenues.
The results aren’t spectacular at all with 4% of revenue declined, which is amounting to $22.5 billion. Considering all areas of the business, IBM suffered from a total net income decline of $2.4 billion or 21%.
Analysts say that if IBM increased its dividend big time, it would possibly push the stock price higher given that the market will likely rationalize the yield compared to the stock price of IBM. This done though would not look for the company to increase dividends until such time that its current moves result in the betterment of IBM’s financial status.
Hopefully IBMs move now and in the next coming days would do well for the company that would lead to spur revenue growth. Of course, it’s not impossible, but you shouldn’t raise your hopes too high though.
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