IBM Cloud Will Drive Cash Flows And Dividends

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About: International Business Machines Corporation (IBM)
by: Arturo Neto, CFA
This article is exclusive for subscribers.
Arturo Neto, CFA
Registered investment advisor, REITs, dividend growth investing, portfolio strategy
Summary

The acquisition of Red Hat will eventually drive revenue growth - the one key metric that Wall Street is focused on.

Share repurchases might slow due to the company's focus on debt reduction, but dividend growth should continue.

After the recent selloff, the stock price looks like a bargain relative to its historical trading range and relative to peers.

In our previous article, we talked about how IBM (IBM) has realigned its strategy around cloud computing to cope with declining year-over-year revenue growth. IBM’s hopes of competing with other tech giants in