10 Best Consistent Dividend Stocks To Invest In Right Now

5. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

An American multinational tech company, International Business Machines Corporation (NYSE:IBM) ranks fifth on our list of the best dividend stocks to invest in. The company has shifted its primary focus to artificial intelligence (AI) and cloud computing under the leadership of CEO Arvind Krishna, who took the helm in 2020. This strategic pivot has contributed to consistent revenue growth. The company distinguishes itself by offering a comprehensive technology stack through its Watsonx platform, paired with consulting services to support the implementation and management of generative AI. While its stock performance lagged over the past decade, IBM’s strong position in the AI sector has driven significant gains this year. The stock has been up by over 44.6% since the start of 2024, outperforming the broader market, which has returned over 28% during this period.

International Business Machines Corporation (NYSE:IBM) reported revenue of $15 billion in the third quarter of 2024, which showed a modest 1.46% growth from the same period last year. This revenue growth was driven by double-digit growth in its Software segment, including renewed momentum in Red Hat. Its generative AI business now exceeds $3 billion, reflecting a quarter-over-quarter increase of more than $1 billion. Looking ahead to the final quarter of 2024, the company anticipates constant currency revenue growth to remain consistent with the third quarter, supported by ongoing strength in Software. Management expressed confidence in achieving over $12 billion in free cash flow for the year, driven by continued operating margin expansion.

In the first nine months of 2024, International Business Machines Corporation (NYSE:IBM) generated $9.1 billion in operating cash flow and its free cash flow for the period came in at $6.6 billion. In Q3, the company returned $1.5 billion to shareholders through dividends. The company pays a quarterly dividend of $1.67 per share and has a dividend yield of 2.86%, as of December 4. It holds a 29-year track record of consistent dividend growth, which makes IBM one of the best dividend stocks on our list.

As per Insider Monkey’s database of Q3 2024, 56 hedge funds owned stakes in International Business Machines Corporation (NYSE:IBM), up from 54 in the preceding quarter. These stakes have a total value of over $1.73 billion.