Microsoft and Alphabet are recommended AI dividend stocks with strong growth potential.

From Nasdaq.: 2024-05-28 15:41:32

The public launch of ChatGPT in 2022 has kept the buzz around artificial intelligence strong in 2024. Cognizant predicts that generative AI could boost U.S. economy productivity by 1.7% to 3.5%, adding $477 billion to $1 trillion in GDP annually over the next decade. AllianceBernstein analysts favor Microsoft and Alphabet for their AI innovations and dividend payouts. Microsoft, with a $3.2 trillion market cap, has ramped up AI investments and reported impressive Q3 earnings, beating expectations with a 17% revenue increase. The company is projecting 20% profit growth in fiscal 2024 and has a consensus “Strong Buy” rating. Alphabet, with a $2.2 trillion market cap, announced its inaugural dividend and repurchase plan. The company’s Q1 earnings surpassed expectations, with a 15.4% revenue increase and a 61.5% EPS rise. Analysts project 32.8% profit growth in fiscal 2024 and a consensus “Strong Buy” rating for the stock. Both companies have strong potential for upside.



Read more at Nasdaq.: 2 Standout AI Dividend Stocks to Buy and Hold Forever