IBM, Texas Instruments And Cisco: The Quest For A Fairly Valued IT Dividend Payer

1/9/18

Introduction

IBM is another dividend payer that seems to trade for a fair valuation. After the Dow Jones crossed the 25,000 milestone, the market kept climbing quickly. As the indices grow much faster than the earnings of the companies, valuations have become less attractive. Finding quality companies for reasonable price is a challenge.

In my two previous articles, I analyzed Texas Instruments (NYSE:TXN) and Cisco (NASDAQ:CSCO). I offered a comparison between the two companies in an attempt to understand which one is more suitable for me. Moreover, six months ago, I offered my own strategy for investing in IBM Corp. (NYSE:IBM) using stock options and equity. All three companies offer reliable dividend payments to investors, and their valuation is lower than the valuation of the broad market.

In this article, I will add IBM to the comparison. I will analyze the opportunities and risks as well as the valuation and the fundamentals. While all three companies offer better-than-average valuation and strong dividend growth opportunities, it is still necessary for me to choose which one is most suitable for my dividend growth portfolio.

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