3 Stocks That Offer AI Exposure And Dividends

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Dividends come with many great perks, with the payouts essentially reflecting a form of ‘payday’ in the market. Income-focused investors often overlook some of the AI-related stocks, as these companies commonly use spare cash to fuel further growth.

But several stocks with favorable AI tailwinds – Broadcom (AVGO - Free Report), Vertiv (VRT - Free Report), and Caterpillar (CAT - Free Report) – 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 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 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.

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.