These 2 AI Stocks Pay Dividends: VRT, ETN
Dividends come with many great perks, with the payouts essentially reflecting a form of ‘payday’ in the market. Income-focused investors often overlook technology stocks, as these companies commonly use spare cash to fuel further growth.
But perhaps to the surprise of some, several stocks with AI exposure – Eaton ETN and Vertiv VRT – shell out dividend payments. For those interested in getting paid with some AI exposure, let’s take a closer look at each.
Concerning headline figures in Vertiv’s latest release, it exceeded both consensus EPS and sales expectations, with EPS soaring 77% on the back of a 26% move higher in sales. The growth rates here are quite significant, reflective of healthy underlying demand.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Vertiv upped its full-year 2025 sales guidance following its latest release, with the midpoint reflecting roughly 16% year-over-year growth. Vertiv also reaffirmed its five-year financial outlook, citing growing AI adoption as a key driver of data generation and data center demand.
Shares currently yield a modest 0.1% annually, with VRT increasing the payout twice over the last five years.
Image Source: Zacks Investment Research
Eaton is an intelligent power management company that provides products for the data center, utility, industrial, commercial, machine building, residential, aerospace, and mobility markets. Shares have been a big beneficiary of the AI frenzy thanks to the data center exposure.
Accelerating orders and continued backlog growth contributed to its recent record-breaking quarter, with adjusted EPS of $2.95 reflecting a Q2 record and up 8% year-over-year. Organic sales grew 8% from the year-ago period, with segment margins of 23.9% also reflecting a Q2 record.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
ETN shares also reflect a great opportunity for those with an appetite for income, sporting a 7.5% five-year annualized dividend growth rate. Impressively, the company has paid a dividend on its shares every year since 1923, with shares currently yielding 1.1% annually. Below is a chart illustrating its dividends paid on an annual basis.
Please note that the final value is calculated on a trailing twelve-month basis, as ETN’s current fiscal-year is still ongoing.
Image Source: Zacks Investment Research
Bottom Line
Dividends offer significant benefits for investors, providing a passive income stream and the opportunity to maximize returns through dividend reinvestment.