International Business Machines Corporation's (IBM) Dividend Strength Makes it One of the Best S&P 500 Dividend Stocks

International Business Machines Corporation (NYSE:IBM) is included among the 10 Best S&P 500 Dividend Stocks to Invest in.

International Business Machines Corporation (NYSE:IBM), commonly known as Big Blue, is an American multinational tech company. Its transformation over the years has been impressive. With a history of more than a century and roots as a pioneer in personal computers, the company is now making important advances in generative artificial intelligence. Its AI platform, watsonx, allows businesses to turn experimental projects into practical solutions. By offering tools such as AI assistants, data platforms, data services, and hybrid cloud applications, it helps developers build and deploy AI more efficiently.

The most significant milestone, however, may still be ahead. International Business Machines Corporation (NYSE:IBM) expects to achieve quantum advantage by the end of 2026, the point at which quantum computers can solve real-world problems faster than classical systems. This would mark the start of a new chapter in computing.

International Business Machines Corporation (NYSE:IBM) is popular among income investors because of the company’s solid dividend history. The company offers a quarterly dividend of $1.68 per share and has a dividend yield of 2.52%, as recorded on September 21. It is among the best dividend stocks because the company holds a 30-year track record of dividend growth.

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.