1 Great Technology Dividend Stock For Passive Income Investors

By Lee Jackson Published Feb 11, 10:53AM EST

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1 Great Technology Dividend Stock For Passive Income Investors — © rodenkoff / iStock via Getty Images

Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.

Investors also love technology stocks as the Magnificent Seven has helped drive the stock market indices to new all-time highs, with the S&P 500 near the 5000 mark. We decided to screen out the 24/7 Wall St. technology dividend database, looking for the company supplying the best passive income stream for investors and with the most significant upside potential.

Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for passive income include investments, real estate, or selling products and services online.

One clear winner in the technology field stood out as a dividend winner and perhaps the best stock for investors looking for a passive income stream and solid upside potential.

International Business Machines is 114 years old.

Founded in 1911 in Endicott, New York, International Business Machines was first known as the Computing-Tabulating-Recording Company before the name was changed 1924 to International Business Machines.

Nicknamed “Big Blue” IBM dominated for years

IBM has evolved into a multi-national technology corporation with a presence in more than 175 countries worldwide. The company dominated technology innovation until the computer revolution took off in earnest.

IBM pays among the highest technology stock dividends

IBM has consistently paid among the highest dividends in the technology sector. IBM’s dividend payments and status as a dividend aristocrat are outstanding. Over the years, the sustainability of its dividends has been a concern to some, given the high payout ratio. However, the company’s strong profitability and good growth rank offer some solid reassurance.

IBM was an early Artificial Intellgence participant

An AI and supercomputer pioneer with Watson, the company moved away from past projects in 2022 but has vowed to invest 20 billion over the next decade to develop and manufacture semiconductors, mainframe computers and technology used for AI and quantum computing.

IBM comprises five major segments

The blue-chip giant offers investors a solid entry point and a rich 3.61% dividend. International Business Machines (NYSE: IBM | IBM Price Prediction) is a leading provider of enterprise solutions, offering a broad portfolio of IT hardware, business and IT services, and a full suite of software solutions.

The company integrates its hardware products with its software and services offerings to provide high-value solutions with five major divisions.

Cognitive Solutions
Global Business Services
Technology Services & Cloud Platforms
Systems
Global Financing.

Top Wall Street analysts have cited the company’s potential in the public cloud for their positive outlook in the future.

Buying Red Hat was huge

The company posted an excellent fourth quarter, as the cloud proved significant in the earnings reports, as did Red Hat, the software giant the firm bought in 2019.

Red Hat’s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM’s innovation, industry expertise, and sales leadership in more than 175 countries.

Red Hat’s OpenShift on IBM Cloud is a managed Red Hat OpenShift cloud service that reduces operational complexity and helps organizations build and scale applications with the security of IBM Cloud. This allows companies to focus on developing and managing applications and building Red Hat OpenShift-based workloads on a managed public cloud service to gain increased responsiveness, scalability, and reliability.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.