International Business Machines (IBM) has emerged as a compelling option for income-oriented investors seeking exposure to artificial intelligence (AI) while enjoying a reliable dividend. In 2026, IBM raised its dividend for the 31st consecutive year, reflecting its commitment to returning value to shareholders. Alongside this, the company reported a robust 9.5% year-over-year revenue growth, driven by significant increases in software and infrastructure revenues, particularly from its AI platform, watsonx, which has begun contributing meaningfully to overall performance.
The strategic positioning of IBM’s watsonx within hybrid cloud environments, particularly in regulated sectors, sets it apart from competitors. The platform’s integration with existing enterprise systems and its growing annual recurring revenue (ARR) highlight IBM’s shift from a legacy hardware company to a software and AI leader. This transformation not only supports long-term revenue growth but also enhances its appeal to both retirees and growth investors.
For market professionals, IBM’s combination of steady dividend growth, increasing free cash flow, and a solid business model anchored in AI and enterprise software presents a unique investment opportunity, especially as it navigates the evolving landscape of technology and data management.
Source: fool.com