IBM $161.82 - New York symbol IBM

IBM $161.82 (New York symbol IBM; Shares outstanding: 997.6 million; Market cap: $197.9 billion; TSINetwork Rating: Above Average; Dividend yield: 2.7%; www.ibm.com) is handing over its computer chip manufacturing operations to Globalfoundries Inc. IBM will not receive any payment for these assets. Instead, it will pay Globalfoundries $1.5 billion to take over this money-losing business. IBM has also agreed to buy chips from Globalfoundries for the next 10 years.

This move is part of IBM’s plan to focus on its more profitable computer services and software divisions, which should spur its earnings as the economy rebounds. Meanwhile, its $4.40-ashare dividend seems safe and yields 2.7%.

IBM is a buy.

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