NEW YORK (TheStreet) -- Shares of (IBM) - Get Report are up by 0.39% to $160.49 in after hours trading Monday, after the company released its fiscal year 2016 second quarter earnings.

Dan Morgan, Synovus Trust Portfolio Manager, still sees IBM as a staple equity stock for paying dividends.

"IBM is a company in transition ... [and now is] very similar to in the 1990s when they made the migration and got out of the hardware or mainframe business and got more into services," Morgan said on CNBC's "Power Lunch."

Stating the Synovus Trust has held IBM for more than a decade and looks at the stock from an income perspective, Morgan says "they still generate a lot of strong free cash flow at about $13 a share, they pay about $5 a share in dividend."

Morgan admits that IBM has had a recent string of weak performance, as "they've had 16 consecutive quarters of negative revenue growth" but says that he is "waiting for that turnaround."

"I think it's something you have to be more patient with ... we look at this more of a dividend play, " Morgan added.

Separately, TheStreet Ratings team rates IBM as a "Buy" with a ratings score of B-. 

This is driven by multiple strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IBM

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