2025 is the year that quantum computing finally matters to portfolio managers. These companies have booked record orders in recent months, and could be the “next big thing” after AI. More likely, quantum computing will simply add to the current AI rally by boosting computing capacity to enormous levels. Nonetheless, when you do look into a quantum computing stock, it is almost a given that the underlying company is burning cash and is essentially pre-revenue.
But it doesn’t have to be this way. You can invest in non-pure-play quantum stocks and still derive significant gains from them if breakthroughs continue. Better yet, they’ll reward you with dividends along the way. Below are two to look into:
IBM (IBM)
IBM (NYSE:IBM | IBM Price Prediction) has made plenty of progress in changing its perception on Wall Street from being a legacy consulting business to a premier quantum computing player. The stock is up 22.17% over the past year, whereas even a 5% annual gain would’ve been a miracle three years ago.
IBM has aggressively pivoted to AI and is riding hybrid cloud and AI tailwinds. The infrastructure segment grew 14% year-over-year, and its software segment grew 10%. Consulting grew just 3%, but the other two segments matter more for investors.
The company is well-positioned to become one of the biggest, if not the biggest, beneficiaries of quantum computing if it goes mainstream. IBM has been researching quantum computing for years, well before AI gained popularity in 2022. The head start it has should give it a more premium valuation. You’re paying just 21.5 times forward earnings here.
Analysts expect 7.42% EPS growth for all of 2025 and almost 7%. EPS growth in 2026. Sales growth is expected to be 6.36% this year and 4.25% next year. The current multiple would be fair, but considering it has one of the largest quantum computing segments, I see more room for gains.
To sweeten the deal, IBM comes with a dividend yield of 2.81%. It has increased its dividends for 29 consecutive years, making it a Dividend Aristocrat. Tech stocks rarely get you over 1% in dividend yield, and you won’t find pure-play quantum computing stocks paying any dividends at all, so IBM’s yield is very generous.
Honeywell (HON)
Honeywell (NASDAQ:HON) is an industrial automation and aerospace company with multiple other segments. One of those is quantum computing. However, Honeywell doesn’t directly own this segment as an internal division anymore. This company has spent a significant amount of time developing quantum computing technology, but it has been getting overlooked in favor of newer entrants. Honeywell Quantum Solutions merged with Cambridge Quantum Computing in 2021 to form Quantinuum. Honeywell retains a majority stake of 54% here.
We’re still early in the quantum computing race, so Honeywell can be one of the biggest winners, and having exposure to it is a good idea. Even if the company does not manage to grab market share in quantum computing, its defense and industrial automation segments should give you plenty of upside over the coming years. Both are hot sectors to put your money into and are likely to remain as such.
Quantinuum is expected to IPO in late 2026 or in 2027. I see this as a big positive catalyst, as the valuation could be $10 billion or more. Investors are willing to pay above and beyond for quantum computing pure plays. It would not be surprising if the valuation turns out much bigger.
In the meantime, Honeywell’s full-year EPS is expected to grow by 6.94% and accelerate to 7.88% in 2026. Revenue growth is expected to be 6.49% in 2025 and 4.67% in 2026.
The long-term automation trend and future breakthroughs in quantum computing can drive growth into the double digits. The increase in aerospace spending is already adding to the tailwinds here.
HON stock comes with a 2.05% dividend yield, increased for 14 consecutive years.
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