10 Dogs of the Dow Dividend Stocks to Invest in

7. International Business Machines Corporation (NYSE:IBM)

Dividend Yield as of December 17: 2.92%

An American multinational tech company, International Business Machines Corporation (NYSE:IBM) ranks seventh on our list of the best Dogs of the Dow dividend stocks. The company focuses on developing business-class systems tailored for use by other organizations. It continues to design AI platforms with robust security measures, clear audit trails to trace the origin of generated data, and other features specifically designed to meet business needs. The stock has been delivering strong earnings since the start of 2024, surging by over 41.6%.

In the third quarter of 2024, International Business Machines Corporation (NYSE:IBM) reported $15 billion in revenue, representing a modest 1.46% growth compared to the same period last year. This growth was largely driven by strong results in the Software segment, including a recovery in Red Hat. The company’s generative AI business exceeded $3 billion in revenue, showing a quarter-over-quarter increase of over $1 billion. For the fourth quarter, IBM expects constant currency revenue growth to align with third-quarter levels, supported by sustained strength in the Software segment. Management remains confident in achieving over $12 billion in free cash flow for the year, supported by further improvements in operating margins.

International Business Machines Corporation (NYSE:IBM) maintains a strong cash position, generating $9.1 billion in operating cash flow in the latest quarter, with free cash flow totaling $6.6 billion. The company also returned $1.5 billion to shareholders through dividend payments. IBM offers a quarterly dividend of $1.67 per share, with a dividend yield of 2.92%, as of December 17. The company has consistently increased its dividends for 29 consecutive years.

International Business Machines Corporation (NYSE:IBM) was a part of 56 hedge fund portfolios at the end of Q3 2024, up from 54 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a collective value of over $1.73 billion.