Real Money Stock Pick: IBM

This week, I'm going on a buying spree for the Real Money Stock Portfolio that I manage for the Fool, and today's selection is one of my favorites: International Business Machines (NYSE: IBM  ) . In fact, I've often mentioned the company as one of my favorite tech blue chips for its uncanny ability to deliver consistent, conservative results, which are exactly the kind of companies I want to own in my defensive value investing portfolio.

The company has a sticky business model that it's always tweaking and improving. Even more importantly, it's one of the best in the business at returning capital to shareholders; consistently growing it's payouts, and buying back stock responsibly. And while top line growth may be hard to come by, its experienced, deep bench of managers is still laser focused on growing profits for investors for years to come. In this video, I lay out my logic for buying Big Blue today.

One of the key reasons I want to own IBM is its dividend prowess. Why? Because dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of the only nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


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  • Report this Comment On July 27, 2013, at 6:03 PM, neamakri wrote:

    Look, IBM is a great business. However, the stock price has languished around $200 for 18 months, and the dividend is way under inflation.

    You can do better. For example, AT&T (T).

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