As we can see, IBM’s dividend has become expensive and income investors must be on watch in
terms of the company’s ability to sustain future payouts at these levels. Share prices have been in
steady decline since 2013 and the stock has developed a series of lower price troughs in its
valuation. In technical chart analysis, this is often considered to be a viable downtrend and we do
not yet see any signs that this downtrend is ready to reverse.
Unfortunately, management does not seem to be helping matters much in choosing not to release
new guidance along with its most recent figures. For IBM, this was a tactic that began in April 2020
and these strategies have done little to arrest the continued decline in share prices. For all of these
reasons, we think that IBM is still too risky for income investors and we will need to see better
evidence of a material turnaround in the company’s growth picture before we can raise our rating.
Watch what happens if/when the dividend gets reduced.
https://seekingalpha.com/article/4381243-ibms-dividend-is-sinking-ship