If T-bills can give me 5% risk-free and IBM pays 4% dividend with risk to your principal and no possibility of revenue growth, why in the world would anyone buy stocks like IBM? These should've dropped by 50% or more. Yet IBM's price is 40% higher than pre-COVID. Can I make a killing shorting all the dividend aristocrats?
Lot of folks buy IBM because they think it can turn it around. Just look at INTC up over 60% since it hit its lows.
INTC seems useful as it’s the only foundry that belongs to us. Not sure about IBM
IBM dividends should be qualified dividends that has up to 20% tax rate, comparing to marginal income tax rate for CD interests
If people would do what makes sense everyone would just own VOO / VTI / QQQM. IBM total gains outperform T bills in the long run.