International Business Machines Corporation (IBM) is one of the top dividend stocks to invest in, boasting a 29-year track record of consistent dividend growth and a current dividend yield of 2.86%. The company has shifted its focus to artificial intelligence and cloud computing, driving revenue growth and significant gains in 2024.
With 56 hedge funds holding stakes in the company, IBM ranks fifth on the list of best dividend stocks to invest in. The stock has returned over $1.5 billion to shareholders through dividends in Q3 alone, and its quarterly dividend payout is $1.67 per share. IBM’s strong position in the AI sector, combined with its comprehensive technology stack through Watsonx, has contributed to its success.
The company’s revenue growth has been driven by double-digit growth in its Software segment, including renewed momentum in Red Hat. Its generative AI business now exceeds $3 billion, reflecting a quarter-over-quarter increase of more than $1 billion. IBM anticipates constant currency revenue growth to remain consistent with the third quarter, supported by ongoing strength in Software.
A 29-year track record of dividend growth and a strong position in the AI sector make IBM an attractive investment option for those seeking a reliable income stream and potential for steady investment growth. However, some analysts argue that AI stocks may hold greater promise for delivering higher returns within a shorter time frame.
Source: https://finance.yahoo.com/news/why-international-business-machines-corporation-154710693.html