In the rapidly evolving world of tech investing, it’s easy to get dazzled by the new stars on the horizon.
Venture capitalists chase after the latest unicorn startups, and retail investors dream of discovering the next Tesla or Amazon before anyone else.
Yet, amid this starry-eyed chase for the next shiny thing, a gemstone lies hidden in plain sight.
One that marries the innovative strength of AI with the stability and attractive income of high-dividend yield.
This stock belongs to a company that’s been around for more than a century, with a strong history of steady returns.
It’s a company that’s weathered countless storms, and in recent years has embraced the era of AI with such conviction that it’s set to become a key player in this high-growth sector.
Despite its historic presence, it might not be the first name that springs to mind when you think of AI.
And yet, this stock offers an intriguing combination of growth potential and dividend yield that is a rarity in the tech industry.
The company we’re talking about is IBM.
With a strong and rising dividend yield of around 5%, IBM is a remarkable player in the AI field.
For years, IBM has been steadily pushing its way into the AI market with a sophisticated suite of services and software.
Its most notable contribution to the field is Watson, an AI program that uses advanced algorithms and machine learning to provide insights to businesses in various sectors, from healthcare to finance.
Watson has turned out to be a key driver for IBM’s revenue growth in recent times.
Beyond Watson, IBM’s robust cloud computing platform, integrated with AI capabilities, positions it well within the accelerating digital transformation trend.
This digital strategy is further backed by its recent acquisition of Red Hat, which adds a significant competitive edge to IBM’s portfolio.
As investors, IBM presents a unique opportunity to gain exposure to AI’s growth while also enjoying the benefits of a significant dividend payer.
Unlike many tech companies that reinvest all their earnings back into their business, IBM has a history of returning wealth to shareholders in the form of dividends.
But, as with all investments, potential investors should carefully consider the risks. IBM has been facing strong competition in the AI and cloud computing space, and its legacy businesses have been under pressure.
Still, its high dividend yield and aggressive push into AI make it a fascinating play for investors looking for tech exposure coupled with income potential.