International Business Machines Corp (IBM.NEO) is the Canadian exchange traded (and considerably less expensive) version IBM shares and is expressed here in Canadian dollars (CAD).

IBM looks to be a part of every aspect of an enterprise’s IT needs. The company primarily sells software, IT services, consulting, and hardware.

IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500.

While IBM is a business to business (or B2B) company, IBM’s outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

The company was formerly known as Computing-Tabulating-Recording Co.

International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

Three key data points gauge International Business Machines Corp or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

IBM.NEO Price

Over the past year, IBM.NEO’s share price grew about 5.3% from $20.68 to $22.41 as of Tuesday’s Canadian market close.

If IBM.NEO’s stock trades in the range of $19.00 to $25.00 this next year, its recent $22.41 share price might rise to $24.50 by next year. Of course, IBM.NEO’s price could drop about the same $2.08 amount, or more.

My upside estimate of $2.08, however, is just under the $2.18 average annual gains over the past twenty months.

IBM.NEO Dividend

IBM.NEO’s most recent variable dividends have been paid quarterly. It’s most recent dividend, paid June 16, was 0.2583 CAD.   IBM.NEO Q dividend has varied between $0.25 and $0.27 in the past twenty months. The current annual payout is calculated as $1.03 yielding 4.61%

IBM.NEO Returns

Adding the $1.04 anticipated annual dividend to IBM.NEO’s estimated $2.08 price upside, reveals a $3.12 potential gross gain per share for the coming year.

At Tuesday’s $22.41 closing price, a little over $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtracting that maybe $0.22 brokerage cost from my estimated $3.12 gross gain per share makes a net gain amounting to $2.90 X 45 shares = $130.50 for about a 13% net gain.

This may be the time to pounce on IBM.NEO shares. But beware, Yahoo Finance lists the stock IBM.NE and YCharts lists it as IBM.NO. It is a Canadian exchange traded stock and while the dividend from $1000 invested comes to $46.10 or nearly twice the amount of a single share price, Canada taxes may take significant bite out of your dividend income.

The foregoing article is based on past history of International Business Machines Corp. The only accurate measure of future performance is from active investment in the company.

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