Topic: How To Invest

Dividend Advisor Hotline – Friday, October 16, 2020

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $125.93, New York symbol IBM, is a buy. The company is one of the world’s largest computer companies, with operations in over 175 countries. IBM now plans to spin off the Managed Infrastructure Services unit of its Global Technology Services business. Managed Infrastructure helps corporate and government clients manage their datacentres. In the 12 months ended June 30, 2020, it had revenue of $19 billion, or 24% of IBM’s total revenue. The new infrastructure company, which is twice as big as its nearest competitor, can also collaborate with other computer firms in addition to IBM. That should help it attract more clients. The remaining business, which had revenue of $59 billion (76% of the total), will focus on IBM’s faster-growing cloud computing and software operations. That includes software maker Red Hat, which IBM acquired in July 2019 for $34 billion. IBM expects to complete the spinoff by the end of 2021. Investors will not be liable for capital gains taxes until…

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