Income investors may think that their portfolios are full of boring stocks, but you can still get reliable dividends while investing in one of the most thrilling opportunities available today – artificial intelligence (AI). Here is a look at three top AI stocks that offer dividends to income investors.
IBM (IBM -1.95%) is a longstanding favorite for income investors, providing a dividend yield of almost 5.2%. The tech giant has been paying a dividend for over 100 years and has grown its dividend every year for 28 straight years. Surprisingly, even though AI has been gaining popularity recently, IBM still remains a leader in the industry, with the largest number of AI patents, and a Gartner leader in conversational AI with its popular Watson technology.
Microsoft (MSFT -0.45%) is in the spotlight today with its many AI-related investments and integrations. For example, the company has invested billions in OpenAI, the maker of ChatGPT, while also introducing generative AI technology to Bing search engine. Needless to say, investors have treated Microsoft’s stock well this year, with an increase of around 30%. Microsoft’s dividend yield currently sits just under 0.9%, but it has been increasing for 13 consecutive years.
Lastly, we have Apple (AAPL 0.16%) which is currently the world’s largest company based on market cap. Apple may not be as visible as Microsoft when it comes to AI involvement, but the tech giant has had its own successes, such as the widely-used AI tool Siri. Tim Cook recently declared that the company will “weave in AI” in its products, and recent staff recruitment efforts support this claim. Apple has been increasing its dividend since 2012, and currently, its dividend yield is slightly below 0.6%.
The three AI stocks listed above offer investors a combination of reliable dividends and exciting opportunities in AI. If you are searching for income investments that hold potential for fantastic returns in the coming years, then IBM, Microsoft, and Apple are all great picks.
