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IBM(IBM - Get Report) is having a good year in 2013. Shares of "Big Blue" have climbed more than 11.3% since the first trading day in January, even besting the impressive performance of the S&P over the same period. IBM builds mainframes, designs software and provides IT services to corporate clients across more than 170 countries.
IBM led the charge for PC makers to switch their focus to enterprise IT back in 2005, selling off its consumer PC business to Lenovo and replacing it with a lucrative set of efforts that includes services that earn mammoth operating profits. Since then, almost every major PC-maker has followed suit, de-emphasizing their increasingly commoditized computer operations in favor of the growth potential of enterprise IT. By becoming a go-to resource for clients, IBM ensures a sticky, (largely recurring) revenue stream. That's enviable positioning, especially given that other computer makers are scrambling to play catch up eight years later.
Financially, IBM is a high performer. The firm earns double-digit net profit margins for its efforts, and it's used that cash to generate one of the heftiest shareholder yields in the tech sector. Last year, IBM returns more than $16 billion to investors in the form of dividends and share buybacks. This week, we're betting on shares of this Rocket Stock name.
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