Dividend Investors Should Be Loading Up on These 2 AI-Linked Stocks

"It should go without saying at this point that artificial intelligence isn't just reshaping the tech landscape, it's rewriting the entire income-investing playbook. For as long as most of us can remember, dividend investors flocked to stable, slower-growth industries that were stable. The thing is, this mindset has now changed as individual investors and hedge funds alike see AI as a profit engine and one of the biggest technological landscape shifts in our lifetime."

"Dividend investors have taken notice of companies that generate so much cash that they can reward investors while still funding explosive growth. Given just how long stable, low-growth sectors like energy or utilities have dominated dividend earnings, things changed in 2025, with early signs that a big shift was coming toward the end of 2024. What's blatantly true right now is that AI and AI-adjacent companies are earning engines."

"So, what are the most attractive plays? Profitable tech leaders like Broadcom ( NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing Company ( NYSE:TSM) sit at the very heart of the AI supply chain. Best of all, both companies combine strong free-cash-flow generation with disciplined capital allocation, a mix that is becoming increasingly rare in high-growth industries. As far as dividend investors should be concerned, these names represent one possible future for dividend investing with stocks that grow and pay."

Artificial intelligence is transforming income investing by shifting dividend interest from traditional, low-growth sectors to profitable AI and AI-adjacent companies. Companies powering AI infrastructure are posting record profits and often returning cash to shareholders through dividends and buybacks while funding growth. The shift accelerated in late 2024 and became clear in 2025 as investors recognized AI as a major profit engine. With bond and cash yields expected to decline as the Federal Reserve eases rates, dividend seekers are pursuing tech leaders that combine strong free cash flow with disciplined capital allocation. Broadcom and Taiwan Semiconductor Manufacturing exemplify firms that grow and pay.

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