About the IBM Blockchain Technology Platform
When it comes to finding technology stocks that are suitable for a dividend growth investing strategy, you won’t find much selection. If you filter all stocks that belong to the “information technology” sector by “number of years dividend increased > 20,” you will have just a small handful of names. The first would be Automatic Data Processing (ADP), a company that’s increased their dividend for 43 years straight. Continuing down the list, you’d find a few smaller names that don’t pass our arbitrary $5 billion market cap cutoff. The only other name on the list is IBM, a stock that’s been debated for almost a decade as being “past its time” with a stale CEO who consistently makes the “worst CEO lists” published by all the major finance rags.
The facts speak for themselves, with IBM sales declining for over five years straight under Ginny Rometty’s well-paid guidance. Only last year did the ship turn around, but cynical investors want to see evidence of sustainable growth before feeling confident that the company has been successful in reshaping their technology product offerings. Here’s what the IBM “turnaround” looks like courtesy of YCharts:
One reason IBM has given for this turnaround is “blockchain”, but there’s no granularity in their financials that lets us know how much blockchain is contributing to the bottom line. All we get is the R
