12 Best Long-Term Dividend Stocks to Invest in Right Now

7. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

International Business Machines Corporation (NYSE:IBM) is an American multinational tech company that provides integrated solutions and services worldwide. In Q3 2024, the company reported a revenue of $15 billion, reflecting a modest 1.46% year-over-year growth. This increase was primarily fueled by strong performance in its Software segment, including a rebound in Red Hat. The company’s generative AI business surpassed $3 billion, marking a quarter-over-quarter growth of over $1 billion. For the final quarter of 2024, IBM expects constant currency revenue growth to remain in line with the third quarter, supported by ongoing strength in Software. Management remains optimistic about achieving more than $12 billion in free cash flow for the year, driven by continued expansion in operating margins.

Under the leadership of CEO Arvind Krishna, who became CEO in 2020, International Business Machines Corporation (NYSE:IBM) has reoriented its focus towards artificial intelligence (AI) and cloud computing. This strategic shift has helped drive steady revenue growth. IBM stands out by providing a full technology stack via its Watsonx platform, along with consulting services to assist in the deployment and management of generative AI. Although the company’s stock performance struggled in the past decade, its strong presence in the AI market has led to notable gains this year.

International Business Machines Corporation (NYSE:IBM) has a solid cash position. The company generated $9.1 billion in operating cash flow in the most recent quarter and its free cash flow came in at $6.6 billion. It also paid $1.5 billion to shareholders in dividends. Currently, the company offers a quarterly dividend of $1.67 per share and has a dividend yield of 2.90%, as of December 11. It is one of the best dividend stocks as the company has been growing its dividends for 29 consecutive years.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 56 funds held stakes in International Business Machines Corporation (NYSE:IBM), growing from 54 in the previous quarter. The consolidated value of these stakes is more than $1.73 billion. Among these hedge funds, Holocene Advisors was the company’s leading stakeholder in Q3.