This month International Business Machines (NYSE: IBM) came out in the top spot with a score of 13, so we’re increasing our position in them after also recommending it last month. It’s currently trading at 21.6% below the 52-week high, representing a good sale, and offers a dividend of 3.8%.
The ratios are also still strong with a P/E of 9.49 and EPS of 14.57. Let’s not forget that Buffett still likes them. Works for us! Remember, too, that while our overall goal is to grow dividend income, capital appreciation of the share price is an important way to build wealth. IBM doesn’t have the highest dividend rate but it offers potential for share price improvement and is a safe bet overall. Last month we mentioned keeping an eye on Williams Companies (NYSE: WMB). This month they placed in the top ten but are too risky for us to recommend it. They are currently 60% below their 52-week high becausethey gave up some ground in the last month meaning their share price continues to slide. Sure, their dividend rate is now over 10% but that might not be sustainable and the slipping share price could still offset that return. We’ll keep waiting on that one.