Information technology giant International Business Machines Corp. (NYSE:IBM) is a Dow component and industry stalwart. International Business Machines Corp. (NYSE:IBM) has served its investors well for decades on end. In fact, had you invested $1,000 in International Business Machines Corp. (NYSE:IBM) stock on May 27, 1980, your investment would be worth more than $19,000 today, according to the company (assuming reinvested dividends). Amazingly, the stock would have provided a 1,879% total return over that time period.
Of course, what’s most important for investors is not to dwell on what happened over the last thirty years, but rather what’s likely to happen over the next 30 years. To that end, does International Business Machines Corp. (NYSE:IBM) still represent a good stock to buy?
Still executing after all these years
International Business Machines Corp. (NYSE:IBM) has a corporate track record that most companies would love to have. The company has provided investors superb revenue and earnings growth throughout its history, and the past few years have been no exception.
International Business Machines Corp. (NYSE:IBM) earned $15.25 per share in 2012 diluted operating earnings, marking a new record. The company has reported double digit diluted EPS growth for 10 years in a row.
In addition, it’s worth noting that the company’s dividend payments have been an important piece of its total return puzzle. 2012 marked the 97th consecutive year in which IBM has paid a dividend, and those quarterly checks have really added up for investors over the years.
More recently, IBM provided investors with a dividend increase in time for its May payout. IBM handed out a solid 12% dividend increase, and currently yields 1.85% at recent prices.
Not the only game in town
Of course, when it comes to large-cap technology stocks joining the dividend-paying rank and file, IBM certainly isn’t alone. Many technology companies, formerly known for high growth and little to nothing in terms of dividends, have changed their policies and now offer hefty yields.
Chip juggernaut Intel Corporation (NASDAQ:INTC) offers new investors a 3.75% annualized yield. If you’re wondering why Intel Corporation (NASDAQ:INTC)’s yield is so high, it’s mainly due to a combination of consistent dividend growth and a falling stock price.