This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IBM, the Tech Company That Can Do No Wrong

BOSTON ( TheStreet) -- IBM (IBM - Get Report), known as Big Blue, is among the most storied U.S. companies. The original "business machine manufacturer" pioneered computing and, then, in the 1990s, as it lost hardware market share to the likes of HP (HPQ - Get Report), Dell (DELL) and Apple (AAPL - Get Report), it reinvented itself as a global technology consultant.

Management, led by current CEO Sam Palmisano, has proven to be forward-looking, nimble and, more importantly, dedicated to rewarding shareholders. IBM's stock has returned 14%, annualized, since 2008, third best of the 30 Dow equities.

IBM was founded in 1911 as the Computing Tabulating Recording Corp. CTR's first products included a computing scale and a time clock to record workers' arrival and departure times. The original "electric tabulating machine" was invented by Herman Hollerith in 1889. It was refined and remodeled repeatedly in CTR's early years. A key turning point for the technology first-mover was the recruitment of Tom Watson Sr. in 1914. Watson, a manager at heart, bred and groomed one of the most dominant sales forces in American history by offering outstanding incentives and insisting on a rigid dress code and conduct policy.

Watson achieved the rank of president within 11 months and, within four years, had doubled CTR's net sales and expanded business to foreign markets, including Europe and South America. In 1924, the firm officially reformed its moniker to IBM. Under the leadership of Watson, IBM became an American powerhouse. When his son, Tom Watson Jr., took the reins in 1952, IBM was investing heavily in research and development, and had established laboratories across the country, which subsequently led to the creation of the first "self-learning" computer program, invention of the Fortran programming language and a newfound focus on information technology, which, at the time, had little appeal to traditional businesses.

IBM, although no longer considered a hardware company, is still among the most esteemed researchers in the country. It holds more patents than any other technology company, and its employees have won numerous Nobel prizes, Medals of Science and Turing awards. More relevant to readers, IBM's stock has been a consistent top performer and remains an attractive blue-chip investment. IBM is a so-called dividend aristocrat, having paid consistent distributions since 1913. The payout has grown 18% in the past 12 months and 18% and 27%, annually, over a three- and five-year span, respectively. However, the current yield is 1.6%.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AAPL $93.74 0.00%
IBM $145.94 0.00%
HPQ $12.27 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs