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Zacks Investment Ideas feature highlights: Broadcom, Vertiv and NVIDIA

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For Immediate Release

Chicago, IL – July 28, 2025– Today, Zacks Investment Ideas feature highlights Broadcom (AVGO - Free Report) , Vertiv (VRT - Free Report) and NVIDIA (NVDA - Free Report) .

Like Dividends? These 3 AI Stocks Pay Investors

Dividends come with many great perks, with the payouts essentially reflecting a form of 'payday' in the market. Technology sector stocks are often overlooked by income-focused investors, as these companies commonly use spare cash to fuel further growth.

But perhaps to the surprise of some, several stocks involved closely in the AI trade – Broadcom, Vertiv and NVIDIA – shell out dividend payments. For those interested in getting paid with some AI exposure, let's take a closer look at each.

Vertiv Continues Momentum

Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.

Analysts have dialed their current fiscal year EPS expectations higher over the past year thanks to bullish results stemming from strong demand, with the current $3.56 Zacks Consensus EPS estimate suggesting 25% YoY growth.

Revenue estimates are bullish as well thanks to the red-hot demand, with Vertiv expected to see 18% YoY sales growth in its current fiscal year. While hares currently yield a modest 0.1% annually, the stock still reflects a strong play for those seeking a combination of growth and yield.

Broadcom Posts Strong AI Revenue

Broadcom is evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. This includes foundational technologies and advanced packaging capabilities aimed at building the highest performance, lowest power custom AI accelerators.

The stock has long been a favorite among those seeking tech exposure paired with paydays, with the company's strong cash-generating abilities allowing it to consistently reward shareholders over its history.

The company has upped its dividend payout six times over the past five years, translating to a sizable 13.3% five-year annualized dividend growth rate.

Notably, AI revenue of $4.4 billion throughout its latest period showed big momentum, melting 46% higher year-over-year. Its cash-generating abilities also continued to remain strong, with free cash flow of $6.4 billion also reflecting a record and climbing 44% year-over-year.

NVIDIA Remains Prime AI Pick

Unrelenting demand for its Data Center products has provided NVIDIA with unprecedented growth over recent years. The AI favorite again came out with rock-solid results in its latest quarterly print, with Data Center sales of $39.1 billion climbing 73% from the $22.5 billion print in the same period last year.

Like VRT, shares currently yield a modest 0.1% annually, a fraction relative to the S&P 500's yield of 1.2%. But while the yield may be muted, the stock remains the strongest play on the AI frenzy out there, providing a stellar blend of growth paired with income-generating abilities.

Bottom Line

Dividends come with great perks for investors, providing a passive income stream and the ability to maximize returns through dividend reinvestment.

Although all three dividend-paying tech stocks above aren't high-yield, the bullish outlook for these companies' AI offerings can't be overlooked by income-focused investors seeking to join the frenzy.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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NVIDIA Corporation (NVDA) - free report >>

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