Top 10 Best Dividend Stocks on Robinhood

7. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

International Business Machines Corporation (NYSE:IBM) ranks seventh on our list of the best dividend stocks on Robinhood. The company has transformed itself into a cloud and artificial intelligence (AI) leader. Its contributions to the hybrid cloud and the development of its Watsonx AI have positioned it as a key player in the technology sector. One aspect of IBM that has received less attention is its work in quantum computing. In many ways, IBM is a leader in this field, prompting some investors to consider whether this advanced technology makes IBM stock an attractive investment. In the past 12 months, the stock has surged by nearly 39%, outperforming the market by a wide margin.

In its recently announced Q4 2024 earnings, International Business Machines Corporation (NYSE:IBM) reported revenue of $17.6 billion, up 1% from the same period last year. The company finished the year with double-digit revenue growth in its Software segment for the quarter, driven by continued acceleration in Red Hat. Clients around the world are increasingly turning to IBM to help them transform using AI. The company’s generative AI business has now reached over $5 billion in total, marking an increase of nearly $2 billion from the previous quarter.

International Business Machines Corporation (NYSE:IBM)’s cash results also came in strong in 2024. During the year, the company generated $13.4 billion in operating cash flow and its free cash flow came in at $12.7 billion. In Q4 2024, it returned $1.5 billion to shareholders through dividends. The company currently offers a quarterly dividend of $1.67 per share and has a dividend yield of 2.61%, as of January 30. IBM has raised its payouts 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), up from 54 in the previous quarter. The consolidated value of these stakes is more than $1.7 billion.