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Wells Fargo sees smaller dividend hike coming from IBM

Published 04/24/2017, 12:50 PM
© Reuters.  Wells Fargo sees smaller dividend hike coming from IBM
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  • IBM (IBM +0.4%) is expected to boost its dividend again tomorrow at its annual meeting, and Wells Fargo (NYSE:WFC) is expecting it to be a 10-cent hike.
  • That's a 7.1% increase to $1.50/share, analyst Maynard Um notes, but it's a smaller move in dollar terms than years past.
  • "From an absolute dollar perspective, this would signify an increase of roughly $291 million vs an average increase over the last five years of roughly $357 million (or an average of $288 million excluding the large increase in 2015) and up 5.5% vs the last five year average of 8.7% (7.2% excluding 2015)," Um says.
  • The $0.10 increas is consisten with last spring's, but smaller than an outsize $0.20 hike in 2015, and $0.15 in 2014.
  • Given the dividend yield, he believes shares may stay range-bound.
  • Now read: IBM: It Will Restart All Over Again With The Small Things


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