In 2021, AI augmentation will create $3.3 trillion of business value, and that’s according to Gartner.
The artificial intelligence market is not just a market anticipated to be enormous in the next half a century, it is also one that is already relatively huge, $3.3 trillion huge.
However, today’s potential in the artificial intelligence market lays majorly in AI augmentation or Augmented Intelligence.
According to IEEE Digital Reality, “augmented intelligence is a subsection of AI machine learning developed to enhance human intelligence rather than operate independently of or outright replace it. It’s designed to do so by improving human decision-making and, by extension, actions taken in response to improved decisions”.
Examples of AI augmentations are semi self-driving vehicles, AI Assistants like Siri, and writing correction software like Grammarly. These technologies are not designed to replace humans rather they are designed to augment us.
With all that has happened last year, I feel more confident to say that 2024 is going to be a better year than 2023 for artificial intelligence stocks and autonomous driving stocks. If anything the pandemic, in many ways, fast-tracked the adoption of numerous artificial intelligence technologies.
The artificial intelligence market is one of those markets for growth-seeking investors who love to invest in dividend-paying stocks.
If you are looking to invest in artificial intelligence dividend stocks, here are 7 best AI dividend-paying stocks to consider:
Annual Dividend Payout: $3.52 per share
Accenture is a global management consulting, technology services, and outsourcing company, with approximately 204,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.
The company also provides outsourcing services. It serves communications, media, high tech, software, and platform companies; banking, capital market, and insurance industries; and consumer goods, retail, travel services, industrial, and life science industries, as well as clients in health, public service, chemicals, and natural resources, energy, and utility sectors.
Accenture plc has alliance relationships with top dogs developing and deploying artificial intelligence today, including Adobe, Alibaba, Amazon Web Services, Blue Yonder, Cisco, Dell, Google, HPE, IBM RedHat, Microsoft, Oracle, Pegasystems, Salesforce, SAP, ServiceNow, VMWare, Workday, and Massachusetts Institute of Technology.
The company has grown to become a leading force, if not the leading force, in the artificial intelligence consulting space. And over the past five years, its stock price has continued to grow handsomely while paying shareholders solid dividends.
Annual Dividend Payout: $0.82 per share
Apple is a multinational corporation that designs, manufactures, and markets mobile communication and media devices, personal computers, portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.
Apple provides many products and services, including iPhone; iPad; iPod; Mac; Apple TV; a portfolio of consumer and professional software applications; the iOS and OS X operating systems; iCloud; and accessories, service, and support offerings.
It sells its products worldwide through its retail stores, online stores, direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers to the consumer and also sells third-party iPhone, iPad, Mac, and iPod compatible products, including application software and accessories through its online and retail stores.
Introduced in 1984, the Macintosh was the first widely sold personal computer with a graphical user interface (GUI). That feature and others such as an improved floppy drive design and a low-cost hard drive that made data retrieval faster helped Apple cultivate a reputation for innovation.
Apple has maintained that reputation for innovation to date and is among the leading forces in the development of Augmentative AI devices/software.
Their most popular product, the iPhone, is AI power-packed, and they also have a host of other Augmentative AI products that have gone mainstream like the Apple Watch, all of which are posed to drive growth for Apple come 2021.
3. Applied Materials
Annual Dividend Payout: $0.88 per share
Applied Materials is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Their expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality.
At Applied Materials, their innovations make possible the technology shaping the future, like (your guess is as good as mine) artificial intelligence.
It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
- The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation and nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective removal, as well as metrology and inspection tools.
- The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products.
- The Display and Adjacent Markets segment offer products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smartphones, and other consumer-oriented devices, as well as equipment for flexible substrates.
The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices.
It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.
Annual Dividend Payout: $6.52 per share
IBM is a global technology and innovation company headquartered in Armonk, NY. It is the largest technology and consulting employer in the world, with more than 400,000 employees serving clients in 170 countries.
IBM offers a wide range of technology and consulting services; a broad portfolio of middleware for collaboration, predictive analytics, software development and systems management; and the world’s most advanced servers and supercomputers. Utilizing its business consulting, technology, and R&D expertise, IBM helps clients become “smarter” as the planet becomes more digitally interconnected.
IBM invests more than $6 billion a year in R&D, just completing its 21st year of patent leadership. IBM Research has received recognition beyond any commercial technology research organization and is home to 5 Nobel Laureates, 9 US National Medals of Technology, 5 US National Medals of Science, 6 Turing Awards, and 10 Inductees in the US Inventors Hall of Fame.
The company was behind the inventions of the PC; SABRE travel reservation system; UPC codes, Watson, the Jeopardy! – playing a computing system, and much more.
Over the decades, the company has established itself as a leading force in the development of artificial intelligence and has recently made the commitment to double down on its cloud and artificial intelligence business by spinning it off and focus more on what it called its legacy technology services (the cloud and artificial intelligence business).
One of the most attractive things about IBM as an artificial intelligence stock, other than its potential to take off especially after spinning off its artificial intelligence and cloud business, is the fat dividends it pays to investors.
Yes! FAT dividends.
Annual Dividend Payout: $2.04 per share
Microsoft is an American multinational corporation that develops, manufactures, licenses supports, and sells a range of software products and services.
Microsoft’s devices and consumer (D&C) licensing segment license Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system.
The company’s computing and gaming hardware segment provides Xbox gaming and entertainment consoles and accessories, second-party and third-party video games, and Xbox Live subscriptions; surface devices and accessories; and Microsoft PC accessories. Its phone hardware segment offers Lumia smartphones and other non-Lumia phones.
Its D&C other segment provides Windows Store, Xbox Live transactions, and Windows phone store; search advertising; display advertising; Office 365 Home and Office 365 Personal; first-party video games; and other consumer products and services as well as operating retail stores.
Microsoft’s commercial licensing segments licenses server products, including Windows Server, Microsoft SQL Server, Visual Studio, System Center, and related Client Access Licenses (CALs); Windows Embedded; Windows operating system; Microsoft Office for business, including Office, Exchange, SharePoint, Lync, and related CALs; Microsoft Dynamics business solutions; and Skype.
Its commercial other segment offers enterprise services, including premier support services and Microsoft consulting services; commercial cloud comprising Office 365 Commercial, other Microsoft Office online offerings, Dynamics CRM Online, and Microsoft Azure; and other commercial products and online services.
The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as online.
In recent years, the company has focused heavily on its cloud segment, Microsoft Azure, which is turning out to be a great growth driver for the company. Cloud computing is a necessity for AI augmentative solutions and it’s one of the sectors to benefit heavily from the drives in artificial intelligence.
Moreover, the company has a host of AI augmentative products that are contributing heavily to its earnings and will most likely do better come 2021.
On top of it, all is the fact that Microsoft pays solid dividends to investors and has continued to raise its quarterly dividend every year since it began paying one in 2004. Its stock price has been growing impressively over the past few years and is in a position to continue that impressive trend in 2021.
Annual Dividend Payout: $2.6 per share
Qualcomm is an American fabless semiconductor company that designs, manufactures, and markets digital wireless telecommunications products and services. It produces processors and connectivity solutions, displays, software, and charging products.
The company is focused on various industries: automotive, education, healthcare, Internet of Things, mobile computing, networking, smart cities, smart homes, and wearables. And these industries are the major industries that are heavily involved in AI augmentation.
Qualcomm’s products include Gobi, Hy-Fi, IPQ, IZat, Powerline, Snapdragon, Small Cells, VIVE, Wi-Fi platforms, Mirasol, Pixtronix, AllPlay, 2net, Brew, HealthyCircles, QChat, QLearn, RaptorQ, Vuforia, Halo, and WiPower.
SnapTrack, Trigenix Ltd, Elata, Berkana Wireless, Qualphone, and Airgo Networks are some of the companies that Qualcomm has so far acquired, as it bids to expand its foothold and get itself in a better position to tap from the artificial intelligence augmentation boom.
It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
- The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.
- The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, CDMA TDD, LTE, and/or 5G standards and their derivatives.
- The QSI segment invests in early-stage companies in various industries, including artificial intelligence, automotive, digital healthcare, enterprise, IoT, mobile, and networking, and investment for supporting the design and introduction of new products and services for voice and data communications, and new industry segments.
The company also provides development, and other services and related products to the United States government agencies and their contractors.
Annual Dividend Payout: $0.4 per share
Teradyne is a supplier of automatic test equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries.
The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments.
- The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic games, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed-signal markets.
It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and outsourced semiconductor assembly and test providers.
- The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems.
- The Industrial Automation segment provides collaborative, autonomous mobile, and advanced robotic control software for manufacturing and light industrial customers.
- The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smartphones, tablets, notebooks, laptops, peripherals, and Internet-of-Things devices under the LitePoint brand name.
This segment also offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, LTE-A, and 5G technologies; IQcell, a multi-device cellular signaling test solution; IQgig test solution; and turnkey test software for wireless chipsets.