These Dividend-Paying Stocks Offer Notable AI Exposure: AVGO VRT

What happened

The article highlights Broadcom and Vertiv as dividend-paying stocks with exposure to artificial intelligence. Vertiv yields 0.1% annually and is expected to report 46% earnings growth on 40% higher sales. Broadcom yields 0.8% annually with a 13.3% five-year annualized dividend growth rate.

Confirmed

Global impact / market context

Vertiv sells power, cooling, and IT equipment for data centers, so growing AI computing demand can lift its sales and profits. Broadcom supplies technology for AI infrastructure, tying its growth to data center spending. Both pay dividends, letting income-focused investors receive cash while gaining AI exposure.

Analyst inference

Technology companies often keep spare cash for growth rather than paying large dividends, so yields on Broadcom and Vertiv are modest. Their appeal rests more on AI-driven sales growth than current income. Vertiv's upcoming results will show whether data center demand is converting into higher sales and earnings.

Analyst inference

What to watch

1. Vertiv's upcoming quarterly results, with consensus expectations of 46% earnings growth on 40% higher sales, will show whether data center demand is driving actual profit growth. Confirmed
2. Investors seeking both dividend income and AI exposure could compare Broadcom's 0.8% yield and 13.3% dividend growth rate against Vertiv's smaller 0.1% yield. Proposed
3. Continued spending on AI data centers would likely support demand for Vertiv's power and cooling equipment and Broadcom's AI infrastructure technology, supporting revenue growth. Analyst inference

Evidence

• zacks.com