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These 2 AI Stocks Pay Dividends: VRT, ETN

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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 - Free Report) and Vertiv (VRT - Free Report) – shell out dividend payments. For those interested in getting paid with some AI exposure, let’s take a closer look at each.

Vertiv Raises Guidance

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.

Zacks Investment Research
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.

Zacks Investment Research
Image Source: Zacks Investment Research

Eaton Breaks Records

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.

Zacks Investment Research
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.

Zacks Investment Research
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.

Although both dividend-paying tech stocks above – Eaton (ETN - Free Report) and Vertiv (VRT - Free Report) – aren’t high-yield, the bullish outlook for these companies’ offerings can’t be overlooked by income-focused investors seeking to join the frenzy.


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