Artificial Intelligence (AI) is quickly becoming a hot topic in the business world, with firms such as ChatGPT bringing the industry to the front of the market. AI stocks have become a riskier, yet potentially high-return investment, as investors look to cash in on the market trend. However, for those who are willing to tread cautiously, two AI related stocks offer dividends with immediate upside: Equinix (EQIX 0.33%) and Intuit (INTU -0.36%).
Equinix is a real estate investment trust that builds data centers which are becoming increasingly necessary to support AI companies. CEO Charles Meyers explained on the first-quarter conference call that the company has already seen a lot of AI-driven demand and is expecting to soon see an “exciting incremental opportunity” from AI. With Artificial Intelligence being increasingly used going forward, Equinix should see strong occupancy, rental rate growth, and new development opportunities. Plus, Equinix offers a slightly higher dividend yield than the S&P 500, giving investors an immediate source of income. The REIT’s stock is currently trading more than 5% lower than its 52-week highs, making it a reasonable investment at 23 times forward earnings.
Intuit is another industry leader looking to become an AI-driven expert platform. In addition to knowledge engineering, natural language processing, and machine learning, Intuit is investing heavily into generative Artificial Intelligence to improve customer outcomes. Through its products, such as QuickBooks and TurboTax, the firm is already tapping into AI to interact with customers and provide tailored and automated experiences. Beyond relying on Artificial Intelligence, Intuit also pays a modest dividend, currently yielding 0.7%. The company has made a point to steadily increase its dividend every year, making it a reliable source of income. Despite having an AI-focused strategy, Intuit’s stock is still well below its 52-week highs and trades at much less than the numerous other AI stocks available.
Equinix and Intuit are two early adopters of Artificial Intelligence that pay dividends with immediate reward. Investing in AI stocks can be a risky endeavor, yet these two stocks offer a safe and secure income while still partaking in the AI megatrend. If investors are looking for a slightly higher reward, these two stocks are the perfect place to start.
