On the IBM Corp dividend, it’s going to be a nailbiting month for holders of the shares, because IBM said that it will address the issue at its next regularly scheduled board meeting, which will take place sometime in January; John Jones of Salomon Brothers – who last week said there was a 50% possibility of a dividend cut – now says there is a 50% chance that it will be completely eliminated; Joseph Payne, an Alex Brown & Sons analyst, said elimination of the dividend is unlikely because it would let loose a huge supply of stok onto the market and fund managers wouldn’t stand for it – a rather naive statement since the non-executive directors would be in breach of their fiduciary duty if they allowed IBM to pay a dividend they judged it could not afford.
