Dividends come with many great perks, with the payouts essentially reflecting a form of ‘payday’ in the market. Technology sector stocks are often overlooked by income-focused investors, as these companies commonly use spare cash to fuel further growth.
And several stocks with favorable AI tailwinds – Broadcom AVGO, Vertiv VRT, and Caterpillar CAT – shell out dividend payments. For those interested in getting paid with some AI exposure, let’s take a closer look at each.
Vertiv Benefits from Data Center Buildout
Vertiv, a current Zacks Rank #2 (Buy), provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.
While shares currently yield a modest 0.1% annually, the stock still reflects a strong play for those seeking a combination of growth and yield.
Broadcom Generates Huge Cash
Broadcom, currently a Zacks Rank #2 (Buy), has quickly entered the AI race, evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. Shares currently yield 0.7% annually, with the company sporting a shareholder-friendly 13.3% five-year annualized dividend growth rate.
The stock has long been a favorite among those seeking tech exposure paired with paydays, with the company’s strong cash-generating abilities allowing it to consistently reward shareholders over its history.
Caterpillar Powers Data Centers
Caterpillar’s products generate the raw power for data centers, with higher demand for power products used in data center applications, primarily large reciprocating engines, reflecting a catalyst. Like those above, the stock sports a favorable Zacks Rank #2 (Buy).
The company deployed $7.9 billion in cash for share repurchases and dividend payouts throughout its FY25. Keep in mind that the company also holds the elite Dividend Aristocrat title, with shares currently yielding 0.8% annually.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Vertiv Holdings Co. (VRT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).