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Reuben Gregg Brewer, The Motley Fool
Sat, May 30, 2026 astatine 12:35 PM CDT 5 min read
I ain precisely 2 exertion stocks, International Business Machines (NYSE: IBM) and Texas Instruments (NASDAQ: TXN). Technology changes truthful rapidly that I'm reluctant to bargain trendy stocks successful the sector, but aged stalwarts with agelong histories of rewarding investors with dividend increases are close up my alley.
Of the 2 tech stocks I own, I deliberation IBM is the astir misunderstood. Not conscionable today, but from a big-picture perspective. Here's wherefore and wherefore I'm happily buying much shares each clip I get a quarterly dividend check.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Why I bought IBM
If I'm not a technology-focused investor, wherefore did I bargain shares of International Business Machines? For starters, erstwhile I purchased the banal successful aboriginal 2016, the institution was profoundly retired of favor. It had a historically precocious dividend output and was successful the mediate of a monolithic firm makeover. It was selling businesses that generated important revenue, but that delivered small successful the mode of profits. And it was buying businesses with much compelling semipermanent maturation opportunities, but not overmuch existent revenue.
I viewed IBM arsenic a low-risk turnaround story, and my thesis played retired precise well. I'm not taking profits and moving one, however, due to the fact that I deliberation this exertion banal has a differentiated concern model. That has thing to bash with its existent absorption connected unreality computing, artificial intelligence, and quantum computing.
Of course, each of those are charismatic concern opportunities that should service the concern well. However, I judge this is wherever the market's misunderstanding starts. IBM doesn't marque large splashy headlines successful immoderate of its concern lines, similar Alphabet's (NASDAQ: GOOG) Google oregon Microsoft (NASDAQ: MSFT). That's due to the fact that Google and Microsoft person businesses that straight interaction consumers. IBM's customers are mostly different businesses, galore of which privation their exertion decisions to enactment retired of the headlines. Thus, IBM's successes often don't get the attraction they deserve.
The biggest misunderstanding of each
The misunderstanding of IBM's B-to-B focus, however, pales successful examination to the company's proven past of adaptation. This is what truly drew maine to the banal and keeps maine reinvesting the dividends each quarter, buying much and much of it. Unlike galore of today's high-profile tech giants, IBM has been successful beingness for much than 100 years.
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