3 Under-the-Radar AI Dividend Stocks to Grab While They Yield Up to 5%

Not every tech stock with growth potential has to be a mega-cap. In fact, companies usually start as lesser-known names. They weren’t the first names investors thought of back then, but now they dominate the spaces they operate in. And, at some point, there comes a time when companies start to focus on shareholder value through buybacks, or better yet, paying dividends. For income investors, that creates an interesting setup. Instead of chasing only the biggest tech names, investors can also look for companies that offer fair yields, reasonable payout ratios, and enough room to keep growing.

So let’s take a look at these dividend-paying tech stocks that might be flying under your radar. 

How I came up with these stocks

Using Barchart’s Stock Screener, I selected the following filters to get my list:

• Annual Dividend Yield % (FWD): Left blank so it could be sorted later from highest to lowest.
• Dividend Payout Ratio (%): 35-65%. This is the sweet spot that can allow the company to grow while maintaining shareholder value.
• Market Cap ($K): Mid to Large to filter established companies, while avoiding companies that may be too speculative.
• Current Analyst Rating: 3.5-5 or stocks that are “Moderate” to “Strong Buy”, according to Wall Street.
• Number of Analysts: 12 or higher. The more analysts covering the stock, the better.
• Market Sectors: Computers and Technology

After setting the filters, the screen returned eight companies. I’ll cover the top three stocks with the highest forward dividend yield. 

Let’s start with the first dividend stock:

Accenture Plc (ACN)

Accenture Plc works with large businesses, particularly on technology and digital transformation projects. I featured it recently, and it continues to stand out because of its ties to areas where businesses are investing, including cloud, cybersecurity, automation, and AI-related tools. 

Accenture has a market cap of ~$86 billion, and it pays a forward annual dividend of $6.52, translating to a yield of around 5%. Meanwhile, its dividend payout ratio is 48.41%, which suggests the company's use of bottom line is rather balanced.

Meanwhile, Wall Street is bullish on the stock, with 26 analysts rating it a “Moderate Buy”, but target prices suggest the stock could more than double over the next year. 

Netease Inc ADR (NTES)

NetEase is a Chinese internet and technology company known for online games and, more recently, digital services. Today, the company has a $79 billion market cap. Recently, NetEase Cloud Music, one of its subsidiaries, recently signed a multi-year licensing agreement with Universal Music Group that expands NetEase’s access to UMG’s music catalog and supports artist promotion and responsible AI practices. 

As for dividends, the company pays $2.87 per share per year, which translates to an annual yield of approximately 2.2%. Not only that, but its dividend payout ratio is just 38.9%, which can support future dividend growth. Speaking of which, the company has increased dividend payouts by 161% over the last five years. 

The company also holds the distinction of being the highest-rated stock on this list, with a consensus among 19 analysts rating it a “Strong Buy,” though its mean-to-high target prices suggest modest upside. 

NXP Semiconductors (NXPI)

NXP Semiconductors is a chip company supplying technology that gets used in cars, industrial systems, mobile devices, and more. Recently, the company announced new robotics solutions developed with NVIDIA, which investors read as a sign that the company is strengthening its role in AI development. NXP has a market cap of about $70 billion, with more room to grow.

NXP Semiconductors currently pays $4.06 per share per year, translating to an annual forward yield of around 1.4%. The company also maintains a reasonable payout ratio at 36.65%. 

On Wall Street, a consensus among 28 analysts rates the stock a “Moderate Buy,” and like the other names on the list, the target prices suggest meaningful potential growth over the next year. 

Final thoughts

These three stocks suggest there are decent opportunities in the technology sector beyond the biggest names, and they pay dividends! Not only that, dividend growth, compounded by potential capital growth, can do wonders for a long-term portfolio. Exposure to tech and AI is just a sweetener.