fbpx

Is IBM Stock Becoming a High-Growth Tech Stock?

October 23. 2023. 7 mins read

Retail investors who choose to invest in technology stocks generally only have one way to make money on their investments. It’s pretty basic: The stock needs to increase in value over time so that it not only outpaces inflation but broad stock indexes such as the Nasdaq or S&P 500. For example, a growth stock like Google Alphabet (GOOG) has returned nearly +5,000% since it went public nearly 20 years ago. In comparison, the S&P 500 has gained about +300% and the Nasdaq more than +580% during the same time period.

Meanwhile, an investment in venerable tech company IBM (IBM) would have yielded a +65% increase over the last couple of decades.

IBM stock performance compared against Google, S&P 500 and Nasdaq.
Yes, you should have invested in Google (red tag) about 20 years ago. While IBM stock has not increased much in value, it has consistently paid dividends.

But gangbuster stock returns are not why investors acquire shares of IBM stock. The 112-year-old company has been paying investors a cash dividend for more than 110 years. And for more than a quarter century now, IBM has increased its dividends to shareholders, making it a dividend champion and a rare tech stock play in a well-rounded dividend-growth investing (DGI

Become a premium member and get access to hundreds of premium articles, reports and additional content.

Nanalyze Premium is your comprehensive guide to investing in disruptive technologies. Read by the top investment banks, management consultancies, VCs, and research houses. Trusted by over 100,000 institutional and retail investors. Covering disruptive technologies for over 18 years.