While the tech sector offers many ways to gain, investing in “Old School” companies such as Microsoft (NASDAQ: MSFT), Intel (NASDAQ: INTC), and IBM (NYSE: IBM) can still be profitable.

That has certainly proven to be the case this year.

For 2013, Microsoft is up almost 20%.  Over the same period, Intel has risen by more than 13%.  While IBM has not performed as well, Warren Buffett is a major shareholder.  That in itself is bullish for IBM.  It is even more positive in that IBM was the first tech stock bought by Buffett for the holdings of Berkshire Hathaway (NYSE: BRK-A).

Even though IBM is down, like Buffett, the analyst community is also bullish.  Now trading around $183 a share, the mean analyst target price for IBM over the next year is $217.80  The most recent analyst recommendation for IBM was from Barclays with a target price of $215.

The most recent analyst action for Intel was bullish, too.  Now trading around $22.67 a share, Argus, an investment firm, just issued a Buy rating for Intel with a target price of $28 a share.  The mean analyst target price for Intel is $23.69.

With a new chief executive officer coming, Microsoft has been jittery in recent trading.

Microsoft is down 7.15% for the last week.  But the most recent analyst action from BMO Capital Markets gave it a target price of $35 a share, more than 10% higher than the current $31.15.  The mean analyst target price for Microsoft over the next year is $34.50.

What Old School tech does that others do not is pay dividends.

Microsoft pays a dividend of 2.95%.  Intel has a dividend yield of 3.97%, about twice the average for a member of the Standard & Poor’s 500 Index.  The shareholders of IBM receive dividend income at the rate of 2.08%.