Better Than Nvidia: 3 AI Dividend Stocks Leaving It in the Dust

AI has created a gold rush for tech companies, but the biggest opportunities may not always come from the names making the most noise.

For income-focused investors, the AI boom presents an interesting opportunity beyond the usual chipmakers and tech giants. After all, every AI model needs infrastructure to power it, creating opportunities for companies operating behind the scenes. I screened the S&P 500 tech sector for dividend-paying companies and found three top performers worth a closer look.

Spoiler: None of it is NVIDIA (NVDA), and they’re definitely better than NVIDIA’s 15.13% year-to-date return. 

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): I set it at 0.1 to filter dividend-paying companies.
• YTD Percent Change: 15% or higher, then I’ll sort the list later from highest to lowest YTD performance.
• Number of Analysts: Set at 12 or more. The bigger the number, the stronger the rating consensus.
• Current Analyst Rating: Wall Street’s “Moderate” to “Strong Buy”-rated stocks.
• Index Group: S&P 500 Info Tech.

I ran the screen and got 19 companies. I will cover the top three with the highest YTD percent change.

Kicking off this list is:

Dell Technologies Inc (DELL)

Dell Technologies is one of the originals, and once one of the biggest names in the PC industry. While companies like Apple have since taken much of the spotlight, Dell is standing strong, making servers, storage, and IT infrastructure, particularly its PowerEdge servers that help organizations build and run increasingly demanding AI workloads. 

While its business may not be making much noise these days, the stock is up 251% year-to-date, which should be enough to catch many investors’ attention.

Aside from that, Dell pays a forward annual dividend of $2.52, translating to a yield of around 0.58% - not massive, but a pretty good bonus on top of the impressive stock performance.

Meanwhile, a consensus among 25 analysts rates the stock a “Moderate Buy”. Its tank may not be full yet, with the high target price suggesting quite an attractive upside potential. 

Seagate Technology Holdings (STX)

The next company is Seagate Technology. While AI chips get most of the buzz, all that computing power also means more data that needs to be stored. Seagate is standing strong in that space, providing high-capacity hard drives for data centers, with its Mozaic technology setting the standard for storage capacity.

As for STX stock, it is up 209% year-to-date, suggesting that storage is as relevant as the chips.

Beyond that growth, the company also pays $2.96 annually, which translates to a yield of 0.35%. Like Dell, its dividends may not be high, but still provide consistent additional income with upside potential.

The company’s strong performance has also earned a Wall Street consensus “Strong Buy” rating, making it the highest-rated company on this list. Meanwhile, the  target prices suggest impressive upside potential over the next year. 

Marvell Technology (MRVL)

Lastly, there’s Marvell Technology, arguably the youngest company on this list. But don’t count it out just yet. Nvidia CEO Jensen Huang himself said this semiconductor company has what it takes to be the next trillion-dollar company. 

That sentiment is reflected in its performance; Marvell is up 179% YTD, while Wall Street analysts maintain a “Strong Buy” rating with decent upside potential based on its high target price. 

The company also pays 24 cents yearly in dividends, which translates to a 0.10% yield. Not the biggest, sure, but it’s just icing on the cake for Marvell’s position and prospects in the AI industry. 

Final thoughts

Investing in companies at the center of the AI boom can be rewarding. But some companies add more value by paying consistent dividends, proving that growth and shareholder value can go hand in hand.