Alright, so International Business Machines (IBM) isn’t sexy when compared to other tech stocks. Boo-hoo, jests Kelley Wright, dividend expert and editor of Investment Quality Trends.

What IBM is though is experienced with reinventing themselves and have done so more times over the last century than any other company we follow and I can think of. Yes, that’s century as in one hundred years.

Remember too that IBM has resources, vast resources, to draw from and leverage. Watson is an ongoing project that has had some wins and losses but is evolving. The purchase of Red Cloud also strengthens IBM in cloud technology, which had been lacking.

All the above aside, IBM is making money, which anyone who really wants to know can discover by looking at their economic internals: Return on Invested Capital (ROIC) = 9%. Free Cash Flow Yield (FCFY) = 7%.

An added bonus is the Street has IBM priced as if their forward profitability will come in at a 40% discount from their long-term average.

Someone hasn’t done their math very well. IBM’s historically repetitive high-yield is 4.0%, which based on the current cash dividend of $6.28 is realized at $157 per share. Trading recently at $115 per share IBM shares are an Undervalued bargain.

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