"If you put money into stock of IBM (NYSE:IBM) five years ago, you’re down about 20%. But you have gotten about half that back in dividends. Unless you think of IBM stock as a bond, whose principal declines as interest is paid out, that’s not a good deal.
Fortunately for IBM, income investors can make that trade, which is why the stock has held up as well as it has.
IBM is simply old money, living off its interest. Sales have fallen steadily since 2013, from $100 billion per year to about $80 billion. (Even if it hits its $22-billion revenue target this quarter, IBM will fall short of that mark.) Operating margins have also declined, from over 20% in 2012 to 15% last year.
Despite this, 8 of 28 analysts following IBM stock put it on their buy lists. What’s wrong with these people?"
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https://investorplace.com/2017/12/dont-believe-in-overvalued-ibm-stocks-transformation/view-all/