IBM

These three legacy technologies continue to invest heavily in new artificial intelligence products and services. That should drive their earnings higher in the next few years. For now, we feel IBM currently offers investors a better combination of AI growth and value than do Apple and Intel.


APPLE INC....
CANADIAN NATIONAL RAILWAY CO., $145.02, Toronto symbol CNR, remains a buy for long-term gains.

CN operates Canada’s largest railway. Its 30,250-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico.

With the March 2025 payment, the company will raise your quarterly dividend by 5.0%, to $0.8875 a share from $0.845....
We have singled out these two stocks and one ETF as your #1 buys for 2025. Each offers investors long-term growth prospects at a reasonable price. We feel all three are poised to deliver big gains for our readers, not only this year but for many years to come.


IBM, $263.30, is a #1 Buy for 2025. The company (New York symbol IBM; Shares outstanding: 924.6 million; Market cap: $244.5 billion; TSINetwork Rating: Above Average; Dividend yield: 2.5%; www.ibm.com) is one of the world’s largest computer firms, with operations in over 175 countries.


IBM has four main divisions: Software (44% of revenue in the latest quarter) provides a variety of software programs that help businesses operate their cloud computing and AI applications; Consulting (35%), through over 16,000 consultants, helps businesses design, install and run their computer systems; Infrastructure (20%) makes and installs mainframe computers for large organizations that process huge volumes of transactions; and Financing (1%) provides loans to businesses that purchase IBM’s mainframes and services.


IBM often buys other companies to enhance its expertise....

KYNDRYL HOLDINGS INC. $36 is still a hold. The company (New York symbol KD; Manufacturing & Industry sector; Shares outstanding: 232.3 million; Market cap: $8.4 billion; No dividends paid; Takeover Target Rating: Medium; www.kyndryl.com) helps corporate and government clients manage their datacentres....
We continue to recommend investors diversify their Finance sector holdings beyond the big banks by holding high-quality non-bank firms such as the three below.


Each is a a leader in its niche industry, which cuts your risk. As well, despite recent share price gains, all three still trade at attractive multiples to their earnings.


AMERICAN EXPRESS CO....

Legacy tech firm IBM has gained 47% in the past year, mainly due to investor enthusiasm for its artificial intelligence (AI) software. The company has a long history with AI; in fact, in 2011, IBM’s Watson supercomputer beat human contestants on the Jeopardy game show.


The company is also benefiting as more businesses shift their computing operations to cloud-based platforms.


We feel IBM still has lots of room to move even higher over the next few years....
Top pick IBM offers a solid yield and an exciting path to profit from both AI & cloud computing – the shares are a strong buy even after a 45.9% one-year return.
YUM! BRANDS INC., $137.21, New York symbol YUM, is still a buy for aggressive investors.

The company operates over 60,000 restaurants in more than 155 countries. Its main banners are KFC (fried chicken), Pizza Hut and Taco Bell (Mexican food)....
KYNDRYL HOLDINGS INC. $24 is still a hold. The company (New York symbol KD; Conservative Growth, Manufacturing & Industry sector; Shares outstanding: 230.5 million; Market cap: $5.5 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.kyndryl.com) helps corporate and government clients manage their datacentres....

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.


Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:


BROADRIDGE FINANCIAL SOLUTIONS, $219.23, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 116.9 million; Market cap: $25.6 billion; Yield: 1.6%) is now using AI to improve its software products....