The Surprising Power Of AI Dividend Machines
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When someone learns that I write about stock market investing, I am often asked about investing in Artificial Intelligence (AI). The impact of AI on business, investing, and everyday life is rapidly expanding.
There are numerous moving parts in the AI universe. Of course, you have the actual artificial intelligence programs, but they need a massive support system of data centers and electricity to power those data centers. For example, chip maker Nvidia Corp. (NVDA), which manufactures the high-speed chips required for AI, has been a winner for investors.
A couple of AI-focused covered call ETFs offer professionally managed portfolios with option overwriting for income.
The REX AI Equity Premium Income ETF (AIPI) launched on June 4, 2024, so it has a bit of history. AIPI has $353 million in assets. The total return for AIPI since launch was 22.8%. Remember that the market went through a steep bear market in March and April.
AIPI pays monthly dividends and has a current distribution rate of 34.8%. Here are the top holdings.
| Name | Weighting | Net Value | Shares Held |
|---|---|---|---|
| Nvidia Corp | 9.92% | $34,743,262.12 | 192,836 |
| Palantir Technologies Inc. Class A | 9.80% | $34,338,920.40 | 217,170 |
| Crowdstrike Holdings Inc. Class A | 9.46% | $33,146,022.00 | 74,991 |
| ARM HOLDINGS PLC | 5.80% | $20,315,370.70 | 142,514 |
| CADENCE DESIGN SYS INC | 3.94% | $13,784,361.03 | 38,907 |
| INTEL CORP | 3.70% | $12,971,752.11 | 520,327 |
| MICRON TECHNOLOGY INC | 3.34% | $11,688,820.00 | 95,810 |
| ARISTA NETWORKS INC | 3.32% | $11,643,169.41 | 85,467 |
| APPLE INC | 3.30% | $11,546,836.56 | 49,651 |
| ALPHABET INC-CL A | 3.21% | $11,245,914.68 | 53,137 |
The YieldMax AI & Tech Portfolio Option Income ETF (GPTY) came to the market on January 22, 2025. This ETF has $50 million in assets under management.
GPTY pays weekly dividends and has a current distribution yield of 34.2%. Here are the fund’s top holdings.he stock symbol OKLO. Terrestrial Energy will combine with a SPAC for a planned fourth-quarter IPO.
| Name | Weighting | Net Value | Shares Held |
|---|---|---|---|
| Nvidia Corp | 9.51% | $4,820,988.86 | 26,758 |
| Palantir Technologies Inc | 8.24% | $4,180,060.32 | 26,436 |
| C3.ai Inc | 5.44% | $2,758,486.98 | 159,358 |
| Meta Platforms Inc | 5.36% | $2,718,267.09 | 3,619 |
| Microsoft Corp | 5.09% | $2,582,345.88 | 5,067 |
| Intel Corp | 4.89% | $2,478,989.34 | 99,438 |
| Alphabet Inc | 4.54% | $2,300,526.80 | 10,870 |
| Snowflake Inc | 4.52% | $2,293,356.00 | 9,516 |
| Apple Inc | 4.45% | $2,256,762.24 | 9,704 |
| Broadcom Inc | 4.32% | $2,189,563.10 | 7,094 |
Since GPTY was launched, it has been the best-performing of the two ETFs. Its total return was 7.2% compared to 2.05% from AIPI. Since the bottom of the bear market on April 8, GPTY has returned 45.9%, compared to 33.8% for AIPI.
The future could be different, and I think owning both would be a good way to get investing exposure to artificial intelligence.
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