AI-Focused Dividend Payers: 3 Stocks to Watch

Dividend-paying stocks are often associated with established companies that prioritize shareholder returns over growth. However, some technology sector stocks, such as Broadcom AVGO and Caterpillar CAT, offer a combination of dividend payments and exposure to artificial intelligence (AI) trends.

Vertiv VRT, a company that provides data center infrastructure solutions, is another example of a stock with AI-related growth potential. Although its current yield is modest at 0.1%, the stock's strong Zacks Rank #2 (Buy) status suggests it may be worth considering for investors seeking both growth and income.

Broadcom AVGO has been expanding its portfolio to support next-generation AI infrastructure, posting record revenue in the process. Its shares yield 0.7% annually, with a five-year annualized dividend growth rate of 13.1%. The company's ability to consistently reward shareholders through dividends and share repurchases has made it a favorite among tech-focused investors.

Caterpillar CAT is also benefiting from the growing demand for power products used in data centers, including large reciprocating engines. The company's FY25 saw $7.9 billion deployed for share repurchases and dividend payouts, solidifying its position as a Dividend Aristocrat with an 0.8% annual yield.