Two top AI stocks that pay decent dividends and have good dividend histories are Taiwan Semiconductor Manufacturing Corp. (TSM) and International Business Machines (IBM). TSM, the world's largest chip foundry, has a dividend yield of 1.26% and a forward P/E ratio of 24.2. IBM has a dividend yield of 2.31% and a forward P/E ratio of 26.7. Both companies are expected to see significant growth in the AI market, with TSM's revenue from AI accelerators projected to double year-over-year.
Two top AI stocks that pay decent dividends and have good dividend histories are Taiwan Semiconductor Manufacturing Corp. (TSM) and International Business Machines (IBM). Both companies are expected to see significant growth in the AI market, with TSM's revenue from AI accelerators projected to double year-over-year.
TSM, the world's largest chip foundry, has a dividend yield of 1.26% and a forward P/E ratio of 24.2. The company recently disclosed a quarterly dividend of $0.6499, which represents an annualized dividend of $2.60 and a yield of 1.14% [2]. TSM's dividend payout ratio is currently 30.59%, indicating a balance between dividend payments and reinvestment in growth. The company's stock has seen increased institutional ownership, with several hedge funds and investment firms growing their stakes in the company [2].
International Business Machines (IBM) has a dividend yield of 2.31% and a forward P/E ratio of 26.7. IBM pays an annual dividend of $6.68 per share, with a dividend yield of 3.04%. The company has grown its dividend for 29 consecutive years, with an average annual increase of 0.20% [3]. IBM's dividend payout ratio is 97.23%, indicating a strong commitment to shareholder returns. The company's stock has also seen increased institutional ownership, with several investment firms and hedge funds growing their stakes in the company [3].
Both companies have received positive analyst ratings and price targets, indicating potential growth and investment opportunities. Susquehanna, Barclays, Citigroup, and Needham & Company LLC have all given TSM a "buy" or "positive" rating, with price targets ranging from $250.00 to $270.00 [2]. IBM has also received positive analyst ratings, with several firms giving the stock a "buy" rating and price targets ranging from $180.00 to $200.00 [3].
In conclusion, Taiwan Semiconductor Manufacturing Corp. (TSM) and International Business Machines (IBM) are two top AI stocks that pay decent dividends and have good dividend histories. Both companies are expected to see significant growth in the AI market, with TSM's revenue from AI accelerators projected to double year-over-year. The companies have received positive analyst ratings and price targets, indicating potential growth and investment opportunities.
References:
[1] https://stockanalysis.com/stocks/tsm/dividend/
[2] https://www.marketbeat.com/instant-alerts/filing-adell-harriman-carpenter-inc-buys-14417-shares-of-taiwan-semiconductor-manufacturing-company-ltd-nysetsm-2025-07-05/
[3] https://www.marketbeat.com/stocks/NYSE/IBM/dividend/
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