Dividend-Paying AI Stocks: How Broadcom and Vertiv Balance Growth and Income in the AI-Driven Economy

The AI revolution is reshaping global industries, creating unprecedented demand for infrastructure, semiconductors, and cooling solutions. For income-focused investors, the challenge lies in identifying companies that not only capitalize on this growth but also provide reliable dividend returns. Broadcom (AVGO) and Vertiv (VRT) stand out as compelling candidates, combining robust AI-related revenue expansion with disciplined dividend policies. This article explores how these two firms are positioned to deliver both capital appreciation and income in the next phase of the AI boom.

Broadcom: A Semiconductor Powerhouse with a High-Yield Dividend

Broadcom's AI semiconductor segment has been a juggernaut in 2024–2025. In Q2 FY2025, AI revenue surged to $4.4 billion, a 46% year-over-year increase, driven by hyperscale demand for AI XPUs and networking solutions. AI networking alone accounted for 40% of this revenue, with Ethernet-based products like Tomahawk switches and Jericho routers seeing a 170% YoY surge. The launch of the Tomahawk 6 switch, capable of 102.4 terabits per second, further cements Broadcom's leadership in AI data center infrastructure.

For income investors, Broadcom's dividend history is equally impressive. The company has raised its dividend for 13 consecutive years, with a current yield of 0.76–0.79% as of August 2025. While the payout ratio of 81.25% is high, it reflects a strong commitment to shareholder returns. Given Broadcom's projected 60% annual growth in AI semiconductors through FY2026, the dividend appears sustainable, albeit with a focus on balancing reinvestment in AI innovation with income generation.

Vertiv: Cooling the AI Infrastructure Boom with a Rising Dividend

Vertiv, a leader in data center infrastructure, has capitalized on the AI-driven demand for cooling and power solutions. In Q2 2025, the company reported $2.638 billion in net sales, a 35% year-over-year increase, with AI-related activity as a key driver. Its trailing twelve-month organic order growth of 11% underscores sustained demand, particularly for high-density white space solutions critical to AI data centers.

Vertiv's dividend story is more recent but promising. After a decade of no payouts, the company began distributing dividends in 2020 and has since increased them annually. The current yield of 0.12% may seem modest, but the payout ratio of just 2.13% based on trailing earnings suggests ample room for growth. With full-year 2025 guidance raised to 24% organic sales growth and a strategic focus on AI-optimized infrastructure, Vertiv is positioning itself to reward shareholders with both revenue expansion and dividend increases.

Strategic Positioning in the AI Boom

Both companies are uniquely positioned to benefit from the next phase of the AI economy. Broadcom's focus on AI semiconductors and custom XPUs aligns with the long-term shift toward inference workloads, which hyperscalers are prioritizing to monetize training investments. Vertiv's role in cooling and power management is equally critical, as AI data centers require advanced infrastructure to handle surging computational demands.

For investors, the combination of Broadcom's high-growth AI segment and Vertiv's infrastructure play offers a diversified approach to the AI sector. Broadcom's established dividend history provides immediate income, while Vertiv's recent payout increases and low payout ratio suggest potential for future yield growth.

Investment Considerations

• Broadcom: Ideal for investors seeking a high-growth AI stock with a reliable, albeit modest, dividend. The company's 60% AI revenue growth trajectory and 13-year dividend streak make it a cornerstone for a balanced portfolio.
• Vertiv: Suited for those prioritizing capital appreciation with a rising dividend. While the current yield is low, the company's strategic investments in AI infrastructure and expanding margins position it for long-term income growth.

Conclusion

The AI-driven economy demands companies that can scale with technological advancements while rewarding shareholders. Broadcom and Vertiv exemplify this duality, offering exposure to the AI boom through high-growth segments and disciplined dividend policies. For income-focused investors, these stocks represent a rare opportunity to align with the future of technology while securing a steady income stream. As the AI revolution accelerates, both companies are well-positioned to deliver value—both in revenue and returns.