When investors think of technology companies, names like Microsoft, Amazon, or Google often dominate the conversation.
But one stock that continues to reward shareholders consistently and deserves serious attention in 2025 is IBM stock (NYSE: IBM).
With an impressive 30 consecutive years of dividend increases, IBM has earned the reputation of a true dividend champion.
Beyond its reliable dividend history, IBM is reinventing itself by taking a strong leadership position in artificial intelligence (AI), particularly in the booming field of generative AI.
A Strong Legacy of Dividends
Dividend growth investors in the United States value consistency, and IBM delivers just that.
The company has increased its dividend for 30 straight years, a record that places it among the elite dividend-paying stocks on Wall Street.
Currently, IBM stock offers a dividend yield of about 2.65%, making it an appealing choice for income-seeking investors who also want exposure to cutting-edge technology.
IBM Stock Dividend Calculator
NYSE: IBM | Current Dividend Yield: 2.65%
For long-term investors, this steady stream of dividend payouts provides not only income but also confidence that IBM is financially sound and committed to rewarding shareholders.
In an era where many tech companies reinvest heavily without offering dividends, IBM stands out as a reliable option for those seeking balance between growth and income.
Also Read: Why I Picked Nextra Energy Stock Over Coca Cola Stock as My Top Dividend Stock
IBM’s Big Bet on Generative AI
One of the most exciting drivers of IBM’s growth in 2025 is its expanding role in generative AI.
Its AI platform, watsonx, has been designed to help businesses transition from AI experiments to real-world applications.
Watsonx equips developers and enterprises with the tools to build and deploy AI solutions quickly and effectively.
Some of its key features include:
- AI assistants that can streamline workflows and customer interactions.
- Data platforms and services to help companies manage and leverage vast amounts of information.
- Hybrid cloud AI tools, allowing organizations to integrate AI seamlessly into their existing infrastructure.
IBM’s generative AI business has already crossed $7.5 billion in revenue, proving that this is not just a futuristic concept but a vital component of IBM’s growth story today.
For U.S. businesses racing to implement AI, IBM provides a trusted, enterprise-level solution that combines innovation with security.
Revenue Growth and Market Outlook
Analysts are optimistic about IBM’s near-term prospects. According to a Yahoo! Finance survey, the company is projected to deliver 10.3% revenue growth in 2025 and another 11.1% in 2026.
This steady expansion reflects both IBM’s growing AI portfolio and its ability to modernize its traditional businesses.
The average analyst price target for IBM stock is $281, which suggests a potential upside of about 10.6% from its recent close of $257.01.
For a company with a history of dividends, reliable earnings, and a forward-looking AI strategy, that kind of upside is attractive.
Also See: Why Coca Cola Stock Is the Perfect Dividend Stock for Millennials
Key IBM Stock Metrics (September 12, 2025)
Investors evaluating NYSE: IBM should note the following key figures:
- Previous Close: $257.01
- Day Range: $252.43 – $257.25
- 52-Week Range: $203.51 – $296.16
- Market Cap: $236.08 billion
- P/E Ratio: 41.11
- Dividend Yield: 2.65%
- Average Daily Volume: 4.9 million shares
These figures show that IBM is a large-cap stock with strong trading volume, stable price action, and continued investor interest. While its P/E ratio of 41.11 is higher than some peers, this valuation reflects investor confidence in IBM’s AI-led future growth.
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