Core Insights - Dividends provide a passive income stream and reflect a form of 'payday' in the market, appealing to investors [1] - Several AI-related stocks, including Broadcom, Vertiv, and NVIDIA, offer dividend payments, making them attractive for income-focused investors [2][6] Company Summaries Vertiv - Vertiv specializes in services for data centers and communication networks, with a strong portfolio in power, cooling, and IT infrastructure solutions [3] - Analysts have raised EPS expectations for Vertiv, with a current estimate of $3.56, indicating a 25% year-over-year growth [3] - Revenue is projected to grow by 18% year-over-year, reflecting strong demand, although the current dividend yield is modest at 0.1% [5] Broadcom - Broadcom is enhancing its AI infrastructure capabilities, focusing on high-performance, low-power custom AI accelerators [8] - The company has increased its dividend payout six times in the past five years, resulting in a 13.3% annualized growth rate [9] - AI revenue reached $4.4 billion, a 46% increase year-over-year, with free cash flow of $6.4 billion, up 44% year-over-year [12] NVIDIA - NVIDIA has experienced significant growth in its Data Center products, with sales reaching $39.1 billion, a 73% increase from the previous year [14] - Similar to Vertiv, NVIDIA's shares yield a modest 0.1%, but the stock is considered a strong play in the AI sector [18] - The combination of growth potential and income-generating capabilities makes NVIDIA a prime choice for investors [19]
Like Dividends? These 3 AI Stocks Pay Investors