2 Artificial Intelligence (AI) Dividend Stocks You Can Buy and Hold for the Next Decade

Some elite companies are capitalizing on the AI boom by rewarding investors with cash dividends. While high-growth AI stocks can be volatile, investing in AI dividend stocks offers a more stable way to benefit from the increasing demand for AI products and services.

Taiwan Semiconductor Manufacturing (TSMC) is a top AI dividend stock to consider. As a leader in semiconductor foundry services, TSMC has a strong market share in producing cutting-edge chips for various tech giants like Apple, Nvidia, and Tesla. The company has consistently increased its sales and earnings, providing shareholders with a steady dividend yield of 1.2%. With a growing demand for AI chips, TSMC is expected to experience even stronger growth in the future.

Another AI dividend stock worth considering is Microsoft (MSFT). The tech giant has made significant investments in AI, including becoming the exclusive cloud computing platform for OpenAI. Microsoft’s AI-powered productivity tools and cloud services have contributed to its impressive revenue growth, with net profits jumping by 20% in the most recent quarter. Analysts expect Microsoft’s earnings to grow by over 16% annually, making it a promising investment for those looking to benefit from AI-fueled profits.

Overall, investing in AI dividend stocks like TSMC and Microsoft can provide investors with stable returns and the potential for wealth-building total returns in the future. It’s important to note that Joe Tenebruso has no positions in the mentioned stocks, and The Motley Fool has disclosed their positions and recommendations.