Analyst recommends IBM for dividend growth, highlighting strong financials and AI products

From Yahoo Finance: 2025-06-27 15:00:00

David Bahnsen, The Bahnsen Group CIO, emphasizes the importance of dividend growth stocks on CNBC, stating they provide investors with a sense of security and stability. He believes dividend growth protects investors from market volatility and uncertainty. Bahnsen highlights IBM as a strong dividend growth play, noting its consistent dividend growth since 1994 and solid financials.

IBM is experiencing a resurgence, with AI products and services generating over $5 billion in total bookings by the end of Q4. The company’s Granite family of AI models has become 90% more cost-efficient, driving growth in software business. RedHat’s AI platforms are also gaining traction, contributing to IBM’s positive outlook for 2025.

Despite IBM’s potential as an investment, some AI stocks are seen as offering greater returns with less risk. Investors seeking a cheap AI stock that benefits from Trump tariffs and onshoring are advised to explore alternative opportunities. For more information on the best short-term AI stock, a free report is available for review.



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