3 Dividend Stocks to Double Up on Right Now

Key Points

• IBM's artificial intelligence (AI) strategy is driving growth, and its free cash flow easily supports a growing dividend.

• AT&T's consistent wireless and fiber growth is impressive.

• Tanger could hold up better than some traditional retailers in an uncertain economic environment.

• 10 stocks we like better than International Business Machines ›

Dividend stocks can be a great addition to any investor's portfolio. Three fantastic dividend stocks to buy right now are International Business Machines (NYSE: IBM), AT&T (NYSE: T), and Tanger (NYSE: SKT). All three companies offer solid dividend yields, and their growth prospects look good despite a volatile and unpredictable economic environment.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. International Business Machines

Despite a tough economic environment, IBM is thriving. The tech giant expects revenue to grow by at least 5% this year, an acceleration compared to 2024. Free cash flow should exceed $13.5 billion for the year as the company's shift toward high-margin software pays off.

While demand is weak for certain types of projects, IBM is seeing intense interest in its generative AI solutions. The company has booked more than $7.5 billion worth of generative AI-related business so far, mostly on the consulting side. IBM's bet that enterprise clients would need AI implementation services just as much as software is looking like a winner. Beyond AI, hybrid cloud software revenue is growing at a double-digit pace thanks to Red Hat.

IBM's current quarterly dividend of $1.68 per share works out to a dividend yield of about 2.8%. The dividend is about as safe as it gets. IBM has paid quarterly dividends uninterrupted since 1916, and it's boosted the dividend annually for 30 years in a row.

With the dividend set to consume less than half of free cash flow in 2025, IBM can support the dividend while paying down its debt. And while dividend growth has been slow in recent years, a bigger dividend increase, or a restart of share buybacks, could be coming soon.

IBM's dividend track record and its impressive performance make the stock an easy choice for dividend investors.

2. AT&T

Telecom giant AT&T has spent years ridding itself of the media and entertainment assets it acquired as part of its ill-fated strategy to become a media conglomerate. With that part of the company's history now in the rearview mirror, AT&T can focus on its two core businesses: wireless and fiber.

This narrowed focus has paid off in the form of consistent growth. The company added 401,000 net postpaid phone subscribers in the second quarter, continuing a long streak of subscriber gains, and churn remained at rock-bottom levels. Mobility service revenue rose by 3.5% year over year.

In the fiber business, AT&T added 243,000 net subscribers and passed its 30 millionth customer location. Fiber revenue shot up 18.9% in the second quarter.

AT&T expects to produce over $16 billion in free cash flow this year, enough to support its dividend and fund roughly $4 billion worth of share buybacks. AT&T's quarterly dividend has been stagnant for years at $0.2775 per share, but a dividend increase could be coming as free cash flow grows. Based on the current dividend, AT&T stock yields about 3.8%.

AT&T is a leaner, more focused company than it was a few years ago, and it shows. Consistent growth and a solid dividend make AT&T a great dividend stock.

3. Tanger

The retail industry is starting to feel some pain as the impact of U.S. tariffs percolate through the economy, but Tanger and its dozens of outlet centers could prove resilient. Tanger operates 40 mostly open-air outlet centers in high-growth suburban markets and popular tourist destinations, offering shoppers deals on brand-name merchandise and retailers a way to sell discounted merchandise in a way that doesn't hurt their brands.

Tanger's occupancy rate reached 96.6% in the second quarter of 2025, slightly below pre-COVID levels, but not by much. The company has a diversified tenant base, with the top 10 tenants accounting for just over 30% of annualized base rent. Rent spreads, which measure the difference between the new rent and the previous rent for the same space, have been positive for more than three years and reached 12% on a blended cash basis in the second quarter of 2025. As a significant percentage of Tanger's leases expire over the next few years, the company will have the opportunity to increase rents further.

Tanger's quarterly dividend currently sits at $0.2925 per share. After slashing the dividend in the early days of the pandemic, an understandable move given the unprecedented disruption facing the retail industry, Tanger has consistently increased it over the past five years. Tanger stock currently sports a dividend yield of about 3.6%.

Tanger isn't immune to an economic downturn, but its outlet-based business model should continue to prove appealing to consumers and retailers. Therefore, compared to traditional retail stocks, Tanger may be a lower-risk option for dividend investors.

Should you invest $1,000 in International Business Machines right now?

Before you buy stock in International Business Machines, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 18, 2025

Timothy Green has positions in AT&T and International Business Machines. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends Tanger. The Motley Fool has a disclosure policy.