International commercial machines (NYSE: IBM) The shares increased by 14% upwards following its fourth quarter and its profit report in 2024. As part of the CEO Arvind Krishna, the company has redefined as a hybrid cloud and intelligence company Artificial (AI), and its leadership reversed what had been a long -term drop in action.
Consequently, the share price has increased by around 35% in the past year. From now on, investors must assess whether the action remains a purchase with higher and lower profit Dividends yield.
Krishna’s turnaround in IBM began before becoming CEO. As chief of division, he directed the purchase of Red Hat in 2019. This decision made the IBM a significant player in the hybrid cloud, and after taking the CEO position in April 2020, Krishna acquired More cloud companies.
In addition, shortly after GPT-4 changed the face of AI, IBM Launched Watsonx to support his work in the new generation foundation models. These developments have led to the high performance of its software segment, which increased its income by 8% in 2024.
In addition, work in quantum computer science has prospered under Krishna. Although technology has not yet aroused widespread commercial interest, its ecosystem firmly positions IBM to prosper in this industry as more and more applications appear.
In addition, the IBM dividend has increased for 29 consecutive years. At $ 6.68 per share per year, its dividend yield is 2.5%, even after increasing the share price. It’s more than double the S&P 500 Average of 1.2%, probably making IBM shares an excellent choice for dividend investors.
However, other parts of the company resemble the stagnant IBM of the past. Consulting and infrastructure companies generate even more combined income than the software segment. Unfortunately, consultation income increased by only 1%, while infrastructure income dropped by 4% per year in 2024.
Unsurprisingly, the different results of IBM segments affected its financial performance. In 2024, revenues of $ 63 billion increased by 1% per year.
In addition, his net income of 2024 in fact fell to $ 6.0 billion compared to $ 7.5 billion in 2023. A drop of $ 2.8 billion in revenues from foreign currencies and other investments caused the drop, indicating that the lower profits are not Not as worrying as possible.
In addition, the management of IBM has offered a more pink perspective for the immediate future, revealing that the company expects the growth of income to reach 5% in 2025. Billions generated in 2024. This faces the Continuous increases in the dividend, which should reassure shareholders of the action.
