Guest Post Published on February 25th, 2025 by Jacob Wolinsky
For quite some time, big tech companies have dominated the equities market, leading investors to see impressive returns.
At the same time, Wall Street remains optimistic that developments in Artificial Intelligence (AI) will further create long-term opportunities for the wider industry.
In 2024, several Silicon Valley big leagues entered the dividend space, including Meta Platform (META), Salesforce (CRM), and Google’s parent company, Alphabet (GOOG), announcing their first-ever dividend payouts.
Performance of technology shares, including those listed on the S&P 500 Technology Dividend Aristocrats Index (SPTDAUP) have continued to deliver impressive results despite investors having cold feet over wider economic and market volatility.
Since the beginning of the year, the S&P Technology Dividend Aristocrats Index has gained 5.50% compared to the broader benchmark S&P 500 which has added 4.22% during the same period.
With this in mind, Sure Dividend created a list of dividend-paying technology stocks.
You can see the full technology stocks list by clicking on the link below:
Technology companies hold an advantage over other leading sectors with the potential for long-term growth and creating attractive returns.
For instance, the 10-year return of SPTDAUP currently outpaces the S&P 500 Dividend Aristocrats Index (SPDAUDP), with a return of 14.01% compared to 7.17%.
The changing market landscape will see a growing number of companies delivering impressive results due to high exposure to artificial intelligence.
Table of Contents
- AI And Big Tech Dividends
- AI Dividend Stock: International Business Machines (IBM)
- AI Dividend Stock: Qualcomm Inc. (QCOM)
- AI Dividend Stock: Broadcom (AVGO)
- AI Dividend Stock: OpenText Corp. (OTEX)
- AI Dividend Stock: Accenture plc (ACN)
AI And Big Tech Dividends
Strong market performance, driven by the rapid development of artificial intelligence, from software applications to hardware and microchips, brings a series of opportunities for dividend-focused investors.
There are several big tech firms that have a reliable dividend track record, offering investors consistency, and improved growth possibilities amid shifting market conditions.
These companies are not ordinary pure-play investment options and instead offer investors a refined balance of growth and income.
AI Dividend Stock: International Business Machines (IBM)
- Dividend Yield: 2.5%
International Business Machines (IBM) has come a long way since the beginning years of commercial computer systems.
Though the company remains a strong contender in the computer hardware and Information Technology (IT) space, recent developments have been more centered around artificial intelligence, including Generative AI and Machine Learning tools.
There are numerous AI-powered projects that have been in the making for quite some time, with IBM Watson, a semantic intelligence application, being in development since 2004, and making a global appearance in 2010.
Being a trusted, and established leader in the technology industry has helped IBM retain its top position in the race for innovation and broader artificial digitization.
These long-term modifications have paid off, with IBM seeing its biggest growth in recent quarters coming from its software segment.
For Q4 2024, IBM reported software revenues of $7.9 billion, up 10.4% on a quarter-over-quarter basis, and up 11.5% on a flat currency basis. Total quarterly revenue came up 1% and totaled $17.6 billion for the period.
The company has continued to deliver impressive profitability, reporting Gross Profit Margin (GAAP) at 56.7%, and operating (non-GAAP) margins of 57.8%.
Most impressively has been the company’s growing cash stockpile. IBM generated $4.3 billion in net cash from operating activities, with a total free cash flow of $6.2 billion.
Additionally, IBM reported $1.5 billion in shareholder dividend payouts for the fourth quarter. The company recognizes the need to adjust business sentiment to leverage key market activities, boost cash flow, and remain highly competitive in a saturated market.
AI Dividend Stock Qualcomm Inc. (QCOM)
- Dividend Yield: 2.1%
Qualcomm (QCOM) is another large player in the computer and technology space, and having more than 40 years of experience under its belt makes it an impressive investment choice for those looking to create a balanced portfolio with broad exposure to different corners of the industry.
To say that the company has actively been working on a handful of AI-based projects might come as an understatement.
In fact, Qualcomm has developed several native AI systems for PC, smartphones, automotive, and IoT (Internet of Things). In addition to this, projects such as Cloud AI and Edge AI Box further provide digital solutions in Gen AI and cybersecurity.
In February, Qualcomm announced Q1 2025 results, reporting a 17% increase in revenues compared to the same period in 2024. In total, for the period, reported revenues were $11.66 billion, along with $3.18 billion in net income, up 15% quarter-over-quarter, along with diluted Earnings Per Share (EPS) of $2.83, up 15%.
In October, the company announced a quarterly cash dividend of $0.85 per common share. Currently, QCOM has an annual dividend of $3.40 per share, which is in line with other market contenders.
Stock performance remains modest, seeing a 13.03% increase since the beginning of the year through February 19. For the first quarter, the company returned $2.7 billion to stockholders, including $942 million in cash dividends, with $1.8 billion through share repurchases.
Again, QCOM requires patience, and investors should keep in mind that the company continues to find its niche within a rapidly developing and changing digital environment. Still, there’s long-term upside potential, and investors who can purchase QCOM at a lower price point could benefit when the tide begins to change.
AI Dividend Stock: Broadcom (AVGO)
- Dividend Yield: 1.03%
Global technology developer Broadcom (AVGO) has noticed that AI-enabled technology and software applications are rapidly approaching an inflection point. This in turn has given them an opportunity to leverage their experience to secure a spot at the top of the list of innovative digital companies that’s driving AI scalability.
At the 2024 Open Compute Project (OCP) Global Summit hosted in October last year, Charlie Kawwas, Ph. D., President of the Semiconductor Solutions Group at Broadcom shared that the company is looking to pioneer new innovative technologies, and continues to secure the necessary resources to scale its AI-infrastructure strategy.
Broadcom delivers plenty of hands-on digital solutions and has a reliable track record that has seen them deliver advancements in fiber channel networking, wired and wireless connectivity, and software applications.
2024 presented itself with a new sense of optimism for the company. Full-year revenue of $51.57 billion was an improvement of 44% compared to the previous year. Similarly, quarterly net revenue rose to $14.05 billion, a 51% increase compared to Q4 2023.
Additionally, Broadcom reported $5.6 billion in cash from operations, climbing $776 million versus the same period of 2023. The company experienced a gradual decline in capital expenditure, totaling $122 million compared to $172 million in Q3 2024.
Revenue across primary business segments delivered strong results. Semiconductor solutions revenue of $8.23 billion improved by 12% and represents roughly 59% of total company revenue.
Elsewhere, Infrastructure Software revenue climbed to $5.82 billion, which was a robust improvement of 196% compared to Q3 2024.
Last year saw the company’s stock gain 139.30% for the 12-month period, however, current year-to-date delivery is down by 1.43% with stocks making its biggest move in one day, falling by 17.40% between January 24-27.
Looking at the year ahead, Broadcom could remain a strong competitor among other market leaders, and potentially capture broader support for its semiconductor business as AI-focused demand continues to climb.
AI Dividend Stock: OpenText Corp. (OTEX)
- Dividend Yield: 3.8%
Next on the list is the Canadian-based software development company, OpenText (OTEX). The company designs and manufactures integrated information management software that provides a more seamless connection between customers and organizations.
AI development has played a key role for OpenText, with several critical projects coming to the surface in recent years. For example, the company developed OpenText™ ArcSight™ Intelligence, which is a native software protocol that makes use of artificial intelligence to detect insider risks, attacks, and cyber threats.
This is only one of several leading projects that are helping to bring OpenText to the frontlines of digital innovation. Their business model sees them partnering with major companies and organizations for critical cybersecurity solutions, enabling them to create more secure and efficient workplace systems.
OpenText completed the divestiture of Application Modernization and Connectivity (AMC) to Rocket Software for $2.27 billion. The recent sell-off means that the company can begin to focus primarily on its information management segment while using proceeds from the divestiture to reduce debt by $2.0 billion.
In addition to this, the remaining proceeds will be used to further growth in the company’s cloud security and AI market segment. The capital allocation will enable OpenText to become a frontrunner in the AI and cybersecurity space while leveraging new market opportunities to build more robust software solutions.
Fiscal Q2 2025 earnings indicate robust delivery of $1.35 billion in total revenue and is the company’s 16th consecutive quarter of cloud organic growth, which totaled $462 million and improved 2.7% year-over-year.
Similarly, the company reported a net income margin of 17% with operating cash flows of $348 million and free cash flows of $307 million. During Q3 2024 OpenText reported $1.27 billion in revenue, which was the company’s first full quarter following the AMC divestiture.
Performance on the stock market remains volatile following a year of persistent challenges, and having to navigate the divestiture of AMC. Stock performance has declined by over 10% in the last 6 months, with year-to-date delivery down 2.93% through to February 19.
While there’s a lot of room for improvement, OpenText could benefit from the rising demand for AI software and cybersecurity protocols in the coming years.
This year might’ve brought plenty of roadblocks, but the company can now look forward to building a more robust product range which in turn will help them capture a bigger share of the market.
AI Dividend Stock: Accenture plc (ACN)
- Dividend Yield: 1.53%
Information management and consulting agency Accenture (ACN) may have endured a challenging summer on the stock market, seeing shares slide by more than 10% between March and September 2024 but still managed to close the year off on a high note.
In the last six months, share performance has gained 17.64% through to February 2023. Additionally, year-to-date delivery is up 10%, with shares setting their second-highest price since December 2021.
Though the company endured some challenging conditions last year, fiscal Q1 2025 results paint a more promising picture, with new bookings revenue of $18.7 billion up 1%, and the reporting $1.2 billion in Generative AI bookings.
Total revenues for the quarter were $17.7 billion, up 9% compared to Q1 2024. Accenture continues to invest in this space, deploying successful strategies to reinvent digital solutions for their clients and position them as a market leader in the space.
Last year, total new bookings revenue hit a record of $81.2 billion for the full fiscal 2024 year and represented an increase of 14% in local currency.
Accenture remains highly successful in applying a working model that allows them to stay in a flexible position. This ensures that the company has a more autonomous approach to current market conditions, while continuously delivering increased customer turnover.
Across much of its operating regions, Accenture reported strong delivery in new bookings and operating income. The Asia Pacific region witnessed the biggest improvement in operating income at 21%, followed by America up 16%, and Europe, Middle East and Africa (EMEA) up 16%.
Though tailwinds persist, perhaps there’s clear guidance in how Accenture is looking to overcome current challenges, while remaining at the forefront of digital innovation and transformation.
Another Year Of Tech Dominance
2025 proves to hold a new set of challenges for investors, and many will need to take a more flexible approach that would allow them to overcome roadblocks and navigate uncertainty more effectively.
Not only will 2025 be a year to see many of the biggest tech giants in the industry battling to remain at the top of the log, but wider changes in the political and economic environment could mean that companies will need to react to ensure their buoyancy.
After facing several years of hard-to-ignore market pitfalls, the technology sector remains a strong, but seemingly resilient leader that’s inviting investors to find long-term growth and reliable income in the tech companies that are pioneering the development of artificial intelligence.
Additional Reading
Sure Dividend maintains similar databases on the following useful universes of stocks:
- The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
- The Dividend Aristocrats: S&P 500 stocks with 25+ years of consecutive dividend increases.
- Dividend Kings: 50+ years of rising dividends
- The Complete List of High Dividend Stocks: Stocks with 5%+ dividend yields.
- The Complete List of Monthly Dividend Stocks: our database currently contains roughly 80 stocks that pay dividends every month.