5 Top Dividend Stocks in Artificial Intelligence -
Artificial intelligence (AI) is a key focus of many technology companies right now. It seems nearly every major technology player is already investing in its own AI, snatching up companies that are working on it, or a little bit of both.
But what if you’re an investor who wants to venture into the burgeoning AI market — which may reach $37 billion by 2025 — and earn a dividend on your investment at the same time? For that, you should look to the top five dividend stocks in artificial intelligence. These companies aren’t necessarily the best dividend stocks you can choose, but they’re some of the best AI players that also pay their investors:
IBM is a longtime player in the AI space (essentially, since the beginning) but launched its “cognitive solutions” business in 2011, and just added its Watson AI services for its mainframe customers.
The company’s latest move aims to make Watson the go-to AI for sifting through private data on company clouds, so that enterprise businesses can better use all of the data they’ve collected.
IBM is understandably keen on getting its AI systems into more businesses, because the company earns 82% gross profit margin from its cognitive solutions segment, far higher than any of its other businesses.
IBM is a solid dividend play in addition to its lofty AI pursuits. The company has raised its dividend every year for the past 22 years, and has a yield of about 3.7% and payout ratio of 46%.
Microsoft already uses artificial intelligence in everything from its Bing search engine to its Xbox gaming console. But it’s the company’s Azure cloud-computing platform that AI-leaning investors should focus on most.
Azure’s machine-learning capabilities are already used for Microsoft’s retail, financial services, healthcare, and manufacturing customers.The company doesn’t share how much revenue it earns from any of its AI services, but Microsoft is on track to earn $20 billion from its cloud-computing platform by fiscal 2018.
The company wants its Microsoft Graph — a collection of user data from Microsoft apps on varying devices — to build what it calls the “intelligent cloud,” so that consumer and enterprise devices are aware of the information that they need, when they need it.
Microsoft has increased its dividend, currently at a 2.3% yield, for the past 13 years, and has a payout ratio of 66%.
Intel has consistently moved further into AI over the past few years, with the development of its own AI chip and purchases of companies focused on AI technologies. Its biggest purchase came in late 2015, when it bought Altera for $16.7 billion, to acquire the company’s field programmable gate array (FPGA) chip technology, ideal for creating AI chips for cloud computing.
Posted on 7wData.be.