Boosting our Tech position
Hope everyone is having a fantastic long weekend. We decided to not go away, but work around the house. Our siding project is finally finished. (what a nightmare, job started in April) So now on to the next projects – working on the deck, replacing some broken fence posts, gardens, beers etc. What have you been up to?
Anyways we had some more money to deposit into the RRSP account. Given the ex dividend date is next week and I feel it’s currently a great deal we bought 18 shares of IBM for 144.86 per share – just above the 52 week low..
This is by far the most expensive individual stock we own now and kinda sucked spending all that money on just 18 shares. haha At this current price it offers a whooping 4.13% yield. Yup for a tech stock! It will also add $108 to our forward dividends. While the analysis’s are all over the map with a fair value ranging from $140 – $220 per share, Morning star gives a fair value of 158$ per share. Unfortunately at the moment we are not rich enough to drip this stock (Rbc only offers full share drip’s)
Solid Dividend Growth Stock
After they boosted the dividend 7.1% this year, IBM has now increased its dividend annually for 22 years in a row, and it’s paid a quarterly dividend uninterrupted since 1916.
While the stock has fallen pretty drastically since February. (over 180 to now) I have read they will bring in big revenues the 2nd half of the year. I also believe Artificial Intelligence is the future and feel IBM is progressing along nicely in this field. BNN talked about IBM awhile back and some guy was saying IBM had the best voice recognition software for future A.I. (This could be different now though)
I feel the market still has bargains out there, IBM maybe one of them. Sitting at close to 52 week lows, offering a massive tech yield, and is a solid dividend growth stock. I’m happy to add IBM to the portfolio!
Have a great weekend and keep on bumping those passive income numbers!