While many high-flying tech stocks don't pay dividends at all, investors can still find attractive dividends within the tech sector. International Business Machines (IBM -1.31%) and AT&T (T -1.97%) are two great examples. On top of solid dividends, both IBM and AT&T have been delivering impressive gains to investors over the past few years. While the past doesn't predict the future, these two dividend stocks look attractive for long-term investors. IBMShares of IBM have more than doubled over the past three ...

Core Viewpoint - IBM has experienced a significant stock rally, with shares more than doubling since the start of 2024, driven by advancements in AI and quantum computing [2][3]. Group 1: Quantum Computing Developments - IBM plans to build the world's first large-scale "fault-tolerant" quantum supercomputer, named IBM Quantum Starling, by 2029, which is expected to have 20,000 times the operational power of current systems [4]. - The Starling system will be capable of processing 100 million quantum operations, with a subsequent processor, Bluejay, projected to enable over one billion operations by 2033 [5]. - A detailed roadmap includes milestones such as the Quantum Loom testing in 2025 and various upgrades leading to the Starling launch [12]. Group 2: AI Innovations - IBM's focus on agentic AI aims to assist large enterprises in managing workflows and proprietary data, exemplified by the Granite AI model on the Watsonx platform [6]. - The AI segment has shown strong performance, with software sales reaching over $6.3 billion in Q1 2025, marking a 9% year-over-year increase [7][8]. - The recurring revenue from products like Red Hat supports this growth, indicating a robust business model [8]. Group 3: Financial Performance - IBM reported strong earnings on April 23, with an EPS of $1.60 surpassing the expected $1.42, and revenue of $14.54 billion exceeding the forecast of $14.41 billion [9]. - The company generated a record $2 billion in free cash flow and improved its EBITDA margin by 240 basis points due to AI workflow automation [10]. - Full-year guidance projects a 5% revenue growth and $13.5 billion in free cash flow generation [10]. Group 4: Analyst Ratings and Stock Forecast - The stock has received multiple analyst upgrades, with price targets ranging from $285 to $300, indicating potential upside from current levels [13]. - The average 12-month stock price forecast is $250.31, suggesting a moderate buy rating among analysts [10][13].