Dividend-Paying Companies Outshine Nvidia in AI Boom

The AI boom is transforming various industries, but investors focused on dividend-paying companies are finding opportunities beyond well-known chipmakers and tech giants.

A screen of S&P 500 tech sector stocks with a forward annual dividend yield above 0.1% revealed three top performers: Dell Technologies Inc (DELL), Seagate Technology Holdings (STX), and Marvell Technology (MRVL).

Dell's stock has surged 251% year-to-date, driven by its PowerEdge servers that support demanding AI workloads.

The company pays a forward annual dividend of $2.52, translating to a yield of around 0.58%, and analysts rate it a 'Moderate Buy' with a high target price suggesting upside potential.