The Smartest Dividend Stocks to Buy With $5,000 Right Now

Dividend stocks give you the benefit of quarterly cash flow and long-term capital gains. However, not all dividend stocks are created equal. Not everyone wants to buy a stock like Micron that has impressive long-term gains but only a 0.06% yield. However, a high-yield dividend stock may present the opposite problem: high cash flow but low overall returns.

These three tech stocks are in the middle ground. They deliver solid fundamental growth while having respectable yields for new investors. Accumulating these three dividend stocks can prove to be a smart move in the long run.

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IBM

IBM (NYSE: IBM) has a dividend yield above 2.5% and has almost doubled over the past five years. It has reinvented itself as an artificial intelligence (AI) infrastructure provider that is investing heavily in quantum computing.

CEO Arvind Krishna cited AI as a "tailwind for our global business" in the first-quarter report. Overall revenue increased by 9% year over year, with the software and infrastructure segments both posting double-digit year-over-year growth rates.

President Donald Trump recently announced an executive order aimed at ramping up U.S. quantum computing investments and specifically mentioned IBM, saying he regretted selling the stock before entering office. It's a notable mention, since it confirms IBM remains on President Trump's radar as his administration continues to financially support specific companies amid the quantum computing expansion.

Quantum computing may turn into a major growth accelerator for the business. IBM said last year that it would invest $150 billion into this technology over the next five years, and it revealed an additional $10 billion investment into the industry that will be spread out over the next five years.

IBM is a mature business that gives investors exposure to exciting opportunities while offering a solid yield.

Cisco

Cisco (NASDAQ: CSCO) is another tech stock that has been reinvigorated by artificial intelligence. It has a 1.4% yield after a superb 57% year-to-date rally.

Cisco has seen significant momentum across multiple segments, which resulted in 12% year-over-year revenue growth in its fiscal 2026 third quarter, which ended April 25. Net income increased by 35% year over year, resulting in a 21.3% net profit margin. That's a big deal for the dividend since it can set the stage for higher dividend hikes in the future.

Broad-based product orders increased by 35% year over year, with much of that activity coming from hyperscalers. Cisco also cited "significant momentum" for AI infrastructure from hyperscalers. It has taken on $5.3 billion of orders year to date, prompting the company to raise its fiscal 2026 orders guidance to $9 billion, which is a meaningful jump from prior guidance of $5 billion.

Growth is expected to continue, according to guidance. Cisco is anticipating $16.8 billion in its fiscal 2026 fourth quarter, which would be a 14.5% year-over-year improvement.

Cisco is exposed to similar opportunities as high-growth AI stocks, but it also has a more mature business that has been through various economic cycles. A 1.4% yield pays well now while investors wait for Cisco to generate additional gains.

Qualcomm

Qualcomm (NASDAQ: QCOM) has mostly watched the AI boom from the sidelines. A 43% gain over the past five years sounds decent until you compare it to other chipmakers like Nvidia and Broadcom. Those two growth stocks have trounced Qualcomm's five-year gains, but the laggard chipmaker is ready to shine.

Qualcomm announced its entry into the data center opportunity in its fiscal 2026 second-quarter results. That was a bigger deal than any of Qualcomm's results for the quarter that ended March 29, which weren't that exciting. Revenue dipped by 3% year over year, and earnings before taxes dropped by 28% year over year.

The big news from that press release was that a leading hyperscaler custom silicon engagement was "on track for initial shipments later this calendar year." Qualcomm now has a focus on data centers, agentic AI, and physical AI. If it can fully execute on its initiatives, the stock deserves a massive rerating, and it still comes with a dividend yield just below 2%.

However, don't expect the stock to stay down much longer compared to its peers. Qualcomm released a major press release in June saying it "sees multiple inflection points over the next 3 to 5 years." The company also set aggressive targets by doubling its fiscal 2029 target for non-handset revenue, aiming for more than $15 billion in revenue from AI infrastructure by fiscal 2029, and expanding into robotics and industrial AI platforms.

Qualcomm is turning from a forgotten chipmaker into an AI chip leader. That pivot seems to be happening very quickly.

Marc Guberti has positions in Broadcom. The Motley Fool has positions in and recommends Broadcom, Cisco Systems, International Business Machines, Micron Technology, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy.