Safe Dividend Stocks in Tech: Why IBM Offers Long-Term Income Security

International Business Machines Corporation (NYSE:IBM) is included among the 10 Best and Safe Dividend Stocks to Buy Now.

International Business Machines Corporation (NYSE:IBM) is a dividend-paying firm that has gained from its substantial involvement in the artificial intelligence (AI) sector. Between the second quarter of 2023 and the first quarter of 2025, IBM expanded its generative AI business, which refers to the total value of active contracts and orders it has obtained, to $6 billion.

International Business Machines Corporation (NYSE:IBM) reported strong earnings in the second quarter of 2025. The company posted revenue of $16.98 billion, which showed a 7.6% growth from the same period last year. The revenue also beat analysts’ estimates by $385.4 million. The company maintains a strong position in the market due to its deep-rooted innovation and industry expertise— two key elements that help clients implement and scale AI effectively. The company’s generative AI business has continued to grow and now exceeds $7.5 billion.

International Business Machines Corporation (NYSE:IBM)’s cash position also remained strong, which makes it one of the best safe dividend stocks to invest in. The company generated $6.1 billion YTD, and its free cash flow amounted to $4.8 billion. During the quarter, it returned $1.6 billion to shareholders through dividends. The company pays a quarterly dividend of $1.68 per share and has a dividend yield of 2.59%, as of July 27. IBM has rewarded its shareholders with growing dividends for 30 years in a row.

While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.