Tech stocks in AI industry are seeing growth in dividends, with Intel, Alphabet, and Microsoft leading.

From Nasdaq: 2024-07-28 06:15:00

Tech stocks in the industry are not typically known for their dividends, but even a small bonus can add value on top of price appreciation. The Nasdaq Composite index has experienced significant growth recently due to AI, projected to reach nearly $2 trillion in spending by 2030. Here are three dividend stocks making waves in AI in 2024.

1. Intel has a long history of dividends, with its payout fluctuating over the years. Despite recent restructuring and decreased dividends, the company has refocused on AI, unveiling new chips and chip plants. With a price-to-sales ratio of 2, Intel’s stock is currently undervalued, presenting a potential investment opportunity.

2. Alphabet, known for brands like Google and YouTube, recently initiated a dividend with a 0.44% yield and $0.20 quarterly payout. With a strong cash position and investments in AI, Alphabet is poised to become a leader in integrating AI across its platforms. Its stock, trading at 26 times earnings, shows potential for growth.

3. Microsoft, a reliable dividend stock, has consistently increased its payout since 2013. With a partnership with OpenAI and strong financial resources, the company is a major contender in the AI industry. Recent earnings show growth in revenue and operating income, making Microsoft a worthwhile investment despite its higher price-to-earnings ratio.



Read more at Nasdaq: 3 Dividend Stocks Making Inroads in Artificial Intelligence (AI) in 2024