International Business Machines Corporation (NYSE:IBM) is included among the 10 Best Rising Dividend Stocks to Buy Now.
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International Business Machines Corporation (NYSE:IBM) has long been a cornerstone of the technology sector, known for its remarkable ability to adapt over more than a century. When the company was founded in 1911, it specialized in products like scales and clocks. Today, IBM develops a wide range of technology, including quantum computers, and plays a key role in supporting cloud computing, which underpins the artificial intelligence (AI) industry.
International Business Machines Corporation (NYSE:IBM) has demonstrated growth in 2025. In the first half of the year, revenue approached $32 billion, marking a 4% increase compared with the same period in 2024, including an 8% rise in the second quarter. Operating income also grew, climbing 14% year over year in the first two quarters. However, net earnings of $3.2 billion fell 5% due to significantly higher income tax expenses.
Despite this, International Business Machines Corporation (NYSE:IBM) projects free cash flow of $13.5 billion, up from $12.7 billion the previous year, comfortably exceeding the $6.2 billion expected for dividend payments. This supports the company’s long-standing record of dividend growth, which has continued for 30 consecutive years. As IBM pays a quarterly dividend of $1.68 per share, offering a yield of 2.11%, as of October 28.
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.