Our first recommendation just publicly launched its Kyndryl subsidiary, the world’s largest IT infrastructure provider. IBM is expected to grow annual earnings at a 15.73% rate over the next five years. Our second recommendation is a sale of a previous idea that has passed its stop.
International Business Machines Corporation (IBM)
From Forbes Dividend Investor
Santa Clara, Calif-based Intel presented a mixed report on Thursday, with earnings topping analysts’ estimates and revenue falling slightly short. Intel got clobbered because it conceded what most analysts were already expecting—that gross margins would be lower than expected due to supply-chain constraints.
Intel plans to develop U.S.-based chip foundries to offset a dependence fabricators in Taiwan, which may be a long-term benefit toward product self-sufficiency, especially if China keeps on rattling sabers and eventually flexes more muscle in Taipei. Intel has an ex-dividend date on November 4 for a payout of $0.3475 per share.
Last week’s buy limit is now a market order to get into the stock by Wednesday so that you earn the dividend. Lending credence to the case that Intel is a good value: $3 million of stock purchases last week by the CEO and four members of the board of directors.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, October 23 & 30, 2021
Sell: ViacomCBS Inc. (VIAC)
From Forbes Dividend Investor
Updated from WSBD 830, June 18, 2020
ViacomCBS fell sharply on heavy volume below its 10% trailing stops, and not with any publicly-available news that came out about its business conditions. The company reports earnings next week. Perhaps somebody had a look at what will be announced and thought it would be smart to sell before the exits get crowded. VIAC already trades below its 200-day and 50-day moving averages.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, October 30, 2021