Why IBM is an Innovative Dividend Stock for the Long Term

International Business Machines Corporation (NYSE:IBM) is included among the 11 Innovative Dividend Stocks to Buy Now.

Why IBM is an Innovative Dividend Stock for the Long Term

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The global technology company, which first gained attention for its punch card machines, successfully adapted to the rise of digital computers as they became the industry norm. Over the years, it has made significant strides in areas such as software, computer memory, databases, personal computing, and more recently, cognitive computing. These groundbreaking developments played a key role in shaping billion-dollar businesses.

International Business Machines Corporation (NYSE:IBM) holds a solid market position thanks to its long-standing focus on innovation and extensive industry knowledge, both of which support clients in successfully adopting and expanding AI. Its generative AI segment has seen steady growth and has now surpassed $7.5 billion.

International Business Machines Corporation (NYSE:IBM) has raised its payouts consistently for 30 years, which makes it a Dividend Aristocrat. The company currently offers a quarterly dividend of $1.68 per share and has a dividend yield of 2.55%, as of July 28.

While we acknowledge the potential of IBM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IBM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.