2 Elite Dividend Growth Stocks I'm Buying on the Dip

Core Viewpoint - The recent market reaction to DeepSeek's AI announcement has led to significant sell-offs in U.S. tech stocks, creating attractive investment opportunities in established dividend-paying companies like ASML and Microsoft [1][2]. Group 1: ASML - ASML's shares fell 7.1% due to market panic, despite its unique position as the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for advanced semiconductor production [4]. - The increasing complexity of semiconductor manufacturing reinforces ASML's dominant market position, making its EUV technology critical and providing exceptional visibility into future cash flow [5]. - ASML offers a modest 0.92% yield with a 27.2% three-year dividend growth rate and a conservative 35.2% payout ratio, presenting a compelling opportunity for dividend growth investors [6]. Group 2: Microsoft - Microsoft's shares dropped 2.49% amid AI concerns, creating an attractive entry point for investors in a strong dividend-growth company [7]. - Despite a modest 0.75% yield, Microsoft's low 24.7% payout ratio and 10.2% three-year dividend growth rate indicate significant potential for future increases [8]. - Microsoft's transformation under CEO Satya Nadella has diversified its revenue streams, with strong positions in Azure cloud services and gaming, supporting future dividend growth [10]. Group 3: Investment Opportunity - The AI-triggered sell-off has created a chance to acquire high-quality dividend stocks like ASML and Microsoft at attractive valuations [11]. - The recent price declines are attributed to market confusion rather than fundamental changes in business prospects, offering a compelling opportunity for long-term dividend growth investors [12].