13 Highest Yielding Dividend Stocks in the Dow

7. International Business Machines Corporation (NYSE:IBM)

Dividend Yield as of January 16: 3.02%

International Business Machines Corporation (NYSE:IBM) is an American multinational tech company that focuses on developing business-class systems tailored for use by other organizations. The company recently announced its plans to acquire Applications Software Technology, a global consulting firm specializing in solutions for the Oracle Cloud Applications Suite. IBM stated that this acquisition will enhance its expertise in the public sector and Oracle Cloud Applications, enabling clients to navigate their business transformations with greater confidence.

Unlike many other AI companies, International Business Machines Corporation (NYSE:IBM) focuses on securing long-term subscription and technical support contracts rather than making quick sales. The setup process can be slow, especially for complex projects like establishing generative AI systems. In the spring of 2023, IBM launched its generative AI platform, watsonx. By the following year, watsonx had secured over $2 billion in multiyear contracts. Just one quarter later, the order book for watsonx grew by an additional $1 billion, marking a 50% increase in just three months, which is considered a tipping point. Over time, the company will convert these paper contracts into cash sales while continuing to sign more AI deals.

In addition to its AI platform, International Business Machines Corporation (NYSE:IBM)’s dividend history also makes it an appealing investment option. The company has remained committed to its shareholder obligation, returning $1.5 billion to investors through dividends in the most recent quarter. Moreover, it maintains a 29-year streak of consistent dividend growth. The company currently pays a quarterly dividend of $1.67 per share and has a dividend yield of 3.02%, as of January 16.

At the end of the third quarter of 2024, 56 hedge funds owned stakes in International Business Machines Corporation (NYSE:IBM), up from 54 in the previous quarter, as per Insider Monkey’s database. The overall value of these stakes is over $1.7 billion. With nearly 2.6 million shares, Holocene Advisors was the company’s leading stakeholder in Q3.