If You'd Put $1,000 Into IBM Stock 20 Years Ago, Here's What You'd Have Today
IBM stock has been a catastrophe for truly long-term investors.



Few companies are more closely associated with the rise and dominance of the American technology industry over the course of the 20th century than International Business Machines (IBM).
Indeed, the company that came to be known as Big Blue is sort of the O.G. of big tech. Founded before World War I, IBM became the industry leader in pretty much every market it entered, from early punch-card tabulating systems to electric typewriters to mainframe and personal computers.
IBM stock was a fantastic buy-and-hold bet over those many, many decades. Between 1926 and December 2019, IBM created $525.9 billion in shareholder wealth, according to research by Hendrik Bessembinder, a finance professor at the W.P. Carey School of Business at Arizona State University. Only seven U.S. stocks generated better returns for shareholders over that span.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Alas, times change. IBM ceded ground to any number of peers, including some of the Magnificent 7 stocks sporting multi-trillion-dollar market caps today. The result? Shares in this long-time Dow Jones stock have been a major disappointment for decades.
True, as a member of the S&P 500 Dividend Aristocrats, IBM is a top-notch name for dependable dividend growth. Not only has the company paid consecutive quarterly dividends since 1916, it has increased its payout annually for 29 years and counting.
But even after factoring in those reliable and rising dividends, IBM stock has been a massive market laggard for ages.
The bottom line on IBM stock?
IBM's 20th century glory days are so much a thing of the past that the stock's performance now lags that of the broader market over any standardized time period beyond three years.
Here's the breakdown: IBM stock's all-time annualized total return (price change plus dividends) comes to 7%. The S&P 500 generated an annualized total return of 10.6% over the same span.
But it doesn't end there. Shares in the tech giant beat the broader market on an annualized total return basis over the past one-, three- and five-year periods, but lag badly over longer time frames.
So it should come as no surprise that if you invested a grand in IBM stock a couple of decades ago, you would be deeply disappointed by the results today.
Have a look at the above chart, and you'll see that if you put $1,000 into IBM stock 20 years ago, it would today be worth about $4,800. That's good for an annualized total return of 8.2%.
The same sum socked away into the S&P 500 over the past two decades would theoretically be worth about $7,600 today, or 10.6% annualized.
The bottom line? As a buy-and-hold bet in the 21st century, Big Blue has been nothing less than a capital killer.
More Stocks of the Past 20 Years
- If You'd Put $1,000 Into Intel Stock 20 Years Ago, Here's What You'd Have Today
- If You'd Put $1,000 Into Disney Stock 20 Years Ago, Here's What You'd Have Today
- If You'd Put $1,000 Into Apple Stock 20 Years Ago, Here's What You'd Have Today
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Trump's Immigration Policies and the Price of Home Healthcare: First 100 Days
President Trump's immigration policies may wallop your pocketbook if you rely on a home healthcare aide.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
How Trump's First 100 Days Have Impacted Your Portfolio
President Trump's first 100 days in office have been busy, with a flurry of executive orders sparking volatility in the stock and bond markets.
-
Is It Still Worth It to Gift Savings Bonds?
Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the Markets
When markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal Diagnosis
The most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your Clients
What financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.