“`html
Microsoft is utilizing AI-powered tools to help developers code 55% faster, while IBM reported over $1 billion in generative AI revenue in Q3 2024. Johnson & Johnson is leveraging AI to shorten drug discovery timelines. With efficiency improvements, companies generating $100 billion in revenue could save $5 billion, potentially funding dividends and buybacks.
Microsoft has a 0.68% yield and a 24.4% payout ratio, with a potential $24.5 billion in savings from a 10% efficiency boost on $245 billion in revenue. IBM offers a 2.38% yield and has increased dividends for 30 years, despite a 114.2% payout ratio. Johnson & Johnson holds a 3.47% yield and is using AI to cut development costs, while ExxonMobil is positioned to profit from AI’s energy needs with a 3.2% yield and a 51.4% payout ratio.
Each of these companies is employing AI to enhance operations, promising both dividend income and future earnings growth amid an evolving AI landscape.
“`
