Back to top

Image: Bigstock

Zacks Investment Ideas feature highlights: Broadcom, Taiwan Semiconductor and NVIDIA

Read MoreHide Full Article

For Immediate Release

Chicago, IL – May 8, 2026 – Today, Zacks Investment Ideas feature highlights Broadcom (AVGO - Free Report) , Taiwan Semiconductor (TSM - Free Report) and NVIDIA (NVDA - Free Report) .

These 3 Dividend-Paying Tech Stocks Offer AI Exposure

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, Taiwan Semiconductor and NVIDIA – shell out dividend payments. For those interested in getting paid with some AI exposure, let’s take a closer look at each.

Taiwan Semiconductor's Critical Role

Taiwan Semiconductor’s critical role in the semiconductor industry has positioned it in an extremely bullish position concerning the AI craze. Shares currently yield 0.7% annually, with TSM also sporting a shareholder-friendly 15.4% five-year annualized dividend growth rate.

TSM’s EPS outlook remains bullish across the board thanks to the favorable environment, helping support continued share momentum.

Broadcom Generates Huge Cash

Broadcom has long been recognized as a strong dividend technology player thanks to its strong cash generation, enabling it to increasingly reward shareholders. The company boasts a sizable 13.1% five-year annualized dividend growth rate, with shares currently yielding 0.6% annually.

For a quick reminder, Broadcom provides custom AI chips and high-speed networking solutions needed to connect massive GPU clusters. Like TSM, Broadcom also sports a bullish EPS outlook across the board thanks to the favorable operating environment, holding a Zacks Rank #2 (Buy).

NVIDIA Remains King

NVIDIA continues to be the AI favorite thanks to its Data Center results that have shown historically strong growth. Shares currently yield a small 0.02% annually, but its current positioning keeps it as a stock that you can’t ignore, no matter what.

The rich demand backdrop has kept the stock at a favorable Zacks Rank #2 (Buy), with analysts continuing to remain bullish across the board.

Bottom Line

Dividends come with great perks for investors, providing an 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 EPS outlooks paired with rock-solid growth outlooks can’t be overlooked by income-focused investors looking to obtain some AI exposure.

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.

Get all the details here >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

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/performance for information about the performance numbers displayed in this press release.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in