These tech companies offer robust dividend yields and AI-powered sales growth.
The hot field of artificial intelligence (AI) boasts an abundance of high-growth tech stocks, but ones offering robust dividends are not so plentiful. Investing in dividend-paying AI companies is a great way to gain passive income while capturing a piece of the rapidly expanding AI market.
Three compelling AI stocks that offer attractive dividend yields are International Business Machines (IBM 1.77%), Cisco Systems (CSCO 0.90%), and Nokia (NOK +1.45%). Not only does this trio deliver dividend payouts, but thay also give investors exposure to different areas of the AI ecosystem, providing diversification to an AI portfolio.
Read on for a deeper look into each company, and why they make compelling AI investments.
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IBM: 2.2% dividend yield
IBM shifted its focus to artificial intelligence and cloud computing after Arvind Krishna became CEO in 2020. the move led to sales growth for Big Blue.
For example, in the third quarter, revenue rose 9% year over year to $16.3 billion. Its software division, which encompasses IBM’s AI offerings, experienced 10% year-over-year growth to $7.2 billion. Sales in its infrastructure segment shot up 17% year over year to $3.6 billion as the new IBM z17 servers, designed specifically for AI, saw the strongest launch in the Z system’s history.
IBM’s 2.2% dividend yield is a great one among AI stocks. Contrast this with AI semiconductor chip leader Nvidia, which offers an anemic 0.02% yield. And Big Blue’s dividend is only getting better. In 2025, the company raised its dividend payment for an remarkable 30th consecutive year.
International Business Machines
Cisco Systems (CSCO)
Today’s Change
(-0.90%) $ -0.70
Current Price
$77.55
Key data Points
Market Cap
$306B
Day’s Range
$77.38 – $78.61
52wk Range
$52.11 – $80.81
Volume
18M
Avg Vol
20M
Gross Margin
63.92%
Dividend Yield
2.10%
Cisco’s 2.1% dividend yield is comparable to IBM’s. Its worth noting that the networking company has consistently increased its dividend payout since 2011. This track record suggests a commitment to returning value to shareholders. It seems Cisco is a reliable option for income-focused investors.
nokia: 2.5% dividend yield
Nokia currently offers a 2.5% dividend yield, making it slightly more attractive than Cisco in terms of immediate income. One might suggest that Nokia’s yield reflects investor sentiment regarding its growth prospects. While Nokia has been working to expand its business beyond customary telecom equipment, it still faces competition. It’s important to consider the company’s overall financial health and future outlook when evaluating its dividend sustainability.
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