Investors often prioritize the financial health of a company when considering investments, especially for those seeking regular dividend payments. Blue-chip companies, with a market cap of over $100 billion, are known for their stable financial status and consistent profits. The Dow Jones Industrial Average, which includes 30 of the largest U.S. companies, is considered a key index to track blue-chip stocks. While the Dow has seen positive growth, the broader market outperformed it in some instances due to factors like the influence of tech giants.
Among blue-chip companies, investors prefer those with strong financial positions that allow for consistent dividend increases. In compiling a list of the Top 10 Blue Chip Dividend Stocks to Buy, criteria included a market cap of over $100 billion and a dividend yield of at least 2%. The number of hedge funds holding stakes in these companies was also considered, as hedge fund investments tend to outperform the market. International Business Machines Corporation (NYSE:IBM) is among the top blue-chip dividend stocks, with 49 hedge funds holding shares as of Q1 2024.
IBM, an American technology firm, has gained momentum in the AI field and seen growth in its Watsonx platform. The company expects AI to drive future revenue growth, with strong performance in AI-related services. In Q1 2024, IBM announced a 0.6% increase in its dividend, marking the 29th consecutive year of dividend growth. With a yield of 3.80% as of July 7, IBM remains an attractive option for investors seeking blue-chip dividend stocks.
While IBM ranks tenth on the list of the best blue-chip dividend stocks, some analysts believe there are deeply undervalued dividend stocks with greater potential for higher returns in a shorter timeframe. Despite IBM’s positive outlook, there may be other opportunities worth exploring for investors looking to maximize their returns. For more insights on potential dividend stocks and investment opportunities, investors can explore reports on stocks with very cheap dividends and Bank of America’s top 10 stocks to buy in Q3 2024. Disclosure: None. (Content originally published in Insider Monkey)
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https://uk.finance.yahoo.com/news/international-business-machines-corporation-ibm-133425609.html
