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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dividends That Are About to Get Bigger

IBM

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

IT behemoth IBM (IBM) is enjoying a good January. Shares of the $229 billion company gapped up hard after management posted strong earnings guidance last week. That puts IBM's performance so far in 2013 to 6%, a full point ahead of the S&P 500's impressive 5% run this month. A hike to the firm's 85-cent quarterly dividend could add some serious icing onto the cake. At the moment, IBM yields 1.67%.

IBM builds mainframes, designs software and provides IT services to corporate clients across the world. The "International" in the firm's name is more than just good marketing; the firm earns around 66 cents of every sales dollar overseas. That positioning is especially impressive given the tailwinds in international enterprise IT markets. As customers abroad look to upgrade their computer infrastructure, IBM offers the most storied name in the business.

>>3 Big Tech Stocks to Trade (or Not)

The firm has historically been good at identifying trends from afar. The firm unloaded its consumer PC unit to Lenovo in 2005, well before other computer companies figured out that their biggest business had become commoditized and margins were getting squeezed to zero. IBM's dug-in positioning in high barrier markets like mainframes gives it one of the few defensible moats in the IT business...

A dividend hike for IBM isn't without serious precedent. Last year, IBM returned $16.07 billion to investors in the form of dividends and buybacks, forking over more than 7.2% of the firm's current market capitalization. With a rally underway in stocks, dividend payouts are going to start looking like a more attractive way to return value to owners in 2013.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs