3 Dividend-Paying Artificial Intelligence Stocks to Buy in 2025

AI Market Growth - The AI market is expected to grow from $184 billion in 2024 to over $826 billion by 2030, indicating a significant expansion [1] - AI has driven a 180% surge in Nvidia's stock price over the past year through Dec 31, 2024 [1] Dividend-Paying AI Stocks - Not all dividend-paying AI stocks are equal, with Nvidia offering a dividend yield of only 0.03% [2] - IBM, Cisco Systems, and Verizon Communications are highlighted as AI companies with strong dividend yields [3] IBM's AI and Dividend Strategy - IBM offers a dividend yield of 3% and has consistently paid quarterly dividends since 1916, increasing payments for the past 29 years [4] - IBM's focus on cloud computing and AI since 2020 has led to rising revenue, with generative AI-related sales increasing by over $1 billion from Q2 to Q3 [4][5] - IBM is investing in quantum computing, which could enable more advanced AI capabilities in the future [5] Cisco's AI-Driven Growth - Cisco's expertise in computer networking is crucial for AI systems, contributing to a 20% YoY rise in product orders in Q1 FY2025 [7][8] - The company forecasts 2025 revenue between $55.3 billion and $56.3 billion, up from $53.8 billion in 2024 [8] - Cisco is integrating its custom semiconductor chip, Silicon One, into all products to support AI, while offering a dividend yield of nearly 3% [9] Verizon's AI and Edge Computing - Verizon's AI involvement focuses on edge computing, leveraging its 5G network to handle large data loads with speed and security [10][11] - Verizon's wireless service business saw a 3% YoY sales increase in Q3 2024, contributing $19.8 billion to the company's $33.3 billion revenue [12] - Verizon has a strong dividend yield of nearly 7%, supported by consistent free cash flow of $14.5 billion through the first three quarters of 2024 [13][14] Conclusion - The growth of the AI market is expected to benefit IBM, Cisco, and Verizon, with their strong dividend yields providing both investment returns and passive income opportunities [14]