Dividend Stocks Worth Considering
IBM’s artificial intelligence (AI) strategy is catalyzing growth, with its free cash flow comfortably supporting a rising dividend.
AT&T is exhibiting remarkable consistency in its wireless and fiber growth, making it a strong contender in the telecom sector.
In today’s uncertain economic climate, Tanger may prove to be more resilient than some traditional retailers, thanks to its unique business model.
Solid Dividend Opportunities
Dividend stocks can enhance an investor’s portfolio. Notable options currently include International Business Machines (NYSE: IBM), AT&T (NYSE: T), and Tanger (NYSE: SKT). These companies offer robust dividend yields and maintain promising growth trajectories despite a challenging economic backdrop.
IBM’s Growing Strength
Despite economic difficulties, IBM is prospering, with projected revenue growth of at least 5% this year, along with anticipated free cash flow exceeding $13.5 billion. This boost is attributed to IBM’s shift towards high-margin software.
While there’s a decline in demand for some projects, IBM is experiencing significant interest in generative AI solutions, securing over $7.5 billion in related business thus far, mostly in consulting.
AT&T’s Focused Growth
Telecom leader AT&T has dedicated itself to its main sectors: wireless and fiber, after divesting from media and entertainment assets. This refined approach led to significant growth, registering 401,000 new net postpaid phone subscribers in the second quarter with minimal churn rates.
In its fiber segment, AT&T achieved 243,000 net subscriber additions and surpassed its 30 millionth customer location. With a forecasted free cash flow of over $16 billion this year, AT&T can bolster its dividend and execute about $4 billion in stock buybacks.
Tanger’s Resilience in Retail
The retail sector is facing challenges from U.S. tariffs, but Tanger and its numerous outlet centers may remain resilient. With operations at 40 outlet centers in thriving suburban and tourist locations, Tanger has a diverse tenant base.
The company’s occupancy rate is at 96.6%, just shy of pre-COVID levels, and it’s poised to increase rents as a significant percentage of its leases expire. Tanger’s current quarterly dividend stands at $0.2925 per share, reflecting five consecutive years of increases since a reduction during the pandemic.
Final Thoughts on Investments
Before making stock investments in International Business Machines, consider insights from the Motley Fool Stock Advisor, which highlights ten stocks believed to outperform IBM. The potential for substantial returns remains as notable recommendations like Netflix and Nvidia have historically yielded impressive results.
