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After the closing bell on Jan 21, International Business Machines (IBM - Free Report) reported stellar fourth-quarter 2019 results. The company registered surprise growth in quarterly revenues and beat the estimates on both earnings and revenues.
Earnings per share came in at $4.71, surpassing the Zacks Consensus Estimate by couple of cents but declined 3% from the year-ago quarter. Revenues inched up 0.1% year over year to $21.8 billion, marking the first revenue growth after five quarters of decline. It also topped the consensus estimate of $21.69 billion. The high-margin cloud computing business led IBM to return to revenue growth. Notably, revenues from cloud business rose 21% to $6.8 billion in the fourth quarter, its largest so far (read: 5 Low-Cost Tech ETFs for Investors).
For 2020, the world’s largest computer-services provider is positioned for sustained revenue growth and expects earnings per share of “at least $13.35,” excluding certain items.
Shares of IBM jumped more than 4% in after-market hours. The stock has a Zacks Rank #3 (Hold) and boasts a top Value Score of A. However, it belongs to a bottom-ranked Zacks industry (bottom 31%).
ETFs to Watch
Given this, ETFs with the highest allocation to this tech giant will be in focus. Investors should closely monitor the movement of these funds and grab the opportunity whenever it arises (see: all the Technology ETFs here).
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
This fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. The product has amassed about $1.2 billion in its asset base while trading in volume of around 77,000 shares per day. It charges 50 bps in annual fees and holds about 93 securities in its basket. Of these firms, IBM takes the fifth spot, making up roughly 7.6% of the assets (read: 5 Dividend ETFs That Beat S&P 500 in 2019).
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
This ETF offers exposure to high-yielding companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 30 stocks in its basket, with IBM occupying the third position with 5.2% allocation. DJD has been able to manage assets worth $91.6 million, while trading in volume of 19,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
This ETF offers exposure to quality stocks that have the highest dividend yield with a deep value bias and multi-factor fundamental analysis. It follows the Solactive Power Factor High Dividend Index, holding 51 stocks in the basket with IBM taking the second spot at 5.1%. The product has amassed $93.3 million in its asset base and trades in lower volume of 18,000 shares a day on average. It charges 70 bps in annual fees.
Global Beta Smart Income ETF
This ETF is newly debuted in the space in late December and has attracted $2.5 million in its asset base within a less than a month. It provides exposure to dividend-paying stocks within the S&P 900 with the highest average 12-month trailing dividend yield over each of the prior four quarters and follows the Global Beta Smart Income Index. Holding 91 stocks in its basket, IBM occupies fifth position with 4.96% allocation. The fund charges 29 bps in annual fees and trades in average daily volume of 12,000 shares.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
With AUM of $1.8 billion, the fund offers exposure to stocks that have shown highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 98 stocks with IBM taking the ninth spot in the basket with 4.1% allocation FDL charges 45 bps in annual fees from investors and trades in solid volume of more than 172,000 shares a day. It has a Zacks ETF Rank #3 with a Medium risk outlook (read: 7 Dividend ETFs That Offer Growth in 2020).
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IBM Posts Surprise Q4 Revenue Growth: ETFs to Tap
After the closing bell on Jan 21, International Business Machines (IBM - Free Report) reported stellar fourth-quarter 2019 results. The company registered surprise growth in quarterly revenues and beat the estimates on both earnings and revenues.
Earnings per share came in at $4.71, surpassing the Zacks Consensus Estimate by couple of cents but declined 3% from the year-ago quarter. Revenues inched up 0.1% year over year to $21.8 billion, marking the first revenue growth after five quarters of decline. It also topped the consensus estimate of $21.69 billion. The high-margin cloud computing business led IBM to return to revenue growth. Notably, revenues from cloud business rose 21% to $6.8 billion in the fourth quarter, its largest so far (read: 5 Low-Cost Tech ETFs for Investors).
For 2020, the world’s largest computer-services provider is positioned for sustained revenue growth and expects earnings per share of “at least $13.35,” excluding certain items.
Shares of IBM jumped more than 4% in after-market hours. The stock has a Zacks Rank #3 (Hold) and boasts a top Value Score of A. However, it belongs to a bottom-ranked Zacks industry (bottom 31%).
ETFs to Watch
Given this, ETFs with the highest allocation to this tech giant will be in focus. Investors should closely monitor the movement of these funds and grab the opportunity whenever it arises (see: all the Technology ETFs here).
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
This fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. The product has amassed about $1.2 billion in its asset base while trading in volume of around 77,000 shares per day. It charges 50 bps in annual fees and holds about 93 securities in its basket. Of these firms, IBM takes the fifth spot, making up roughly 7.6% of the assets (read: 5 Dividend ETFs That Beat S&P 500 in 2019).
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
This ETF offers exposure to high-yielding companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 30 stocks in its basket, with IBM occupying the third position with 5.2% allocation. DJD has been able to manage assets worth $91.6 million, while trading in volume of 19,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
WBI Power Factor High Dividend ETF (WBIY - Free Report)
This ETF offers exposure to quality stocks that have the highest dividend yield with a deep value bias and multi-factor fundamental analysis. It follows the Solactive Power Factor High Dividend Index, holding 51 stocks in the basket with IBM taking the second spot at 5.1%. The product has amassed $93.3 million in its asset base and trades in lower volume of 18,000 shares a day on average. It charges 70 bps in annual fees.
Global Beta Smart Income ETF
This ETF is newly debuted in the space in late December and has attracted $2.5 million in its asset base within a less than a month. It provides exposure to dividend-paying stocks within the S&P 900 with the highest average 12-month trailing dividend yield over each of the prior four quarters and follows the Global Beta Smart Income Index. Holding 91 stocks in its basket, IBM occupies fifth position with 4.96% allocation. The fund charges 29 bps in annual fees and trades in average daily volume of 12,000 shares.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
With AUM of $1.8 billion, the fund offers exposure to stocks that have shown highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 98 stocks with IBM taking the ninth spot in the basket with 4.1% allocation FDL charges 45 bps in annual fees from investors and trades in solid volume of more than 172,000 shares a day. It has a Zacks ETF Rank #3 with a Medium risk outlook (read: 7 Dividend ETFs That Offer Growth in 2020).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>