It should go without saying at this point that artificial intelligence isn’t just reshaping the tech landscape, it’s rewriting the entire income-investing playbook. For as long as most of us can remember, dividend investors flocked to stable, slower-growth industries that were stable. 

The thing is, this mindset has now changed as individual investors and hedge funds alike see AI as a profit engine and one of the biggest technological landscape shifts in our lifetime.

Dividend investors have taken notice of companies that generate so much cash that they can reward investors while still funding explosive growth. 

Why Dividend Investors Are Turning to AI Stocks for Income

Given just how long stable, low-growth sectors like energy or utilities have dominated dividend earnings, things changed in 2025, with early signs that a big shift was coming toward the end of 2024. 

What’s blatantly true right now is that AI and AI-adjacent companies are earning engines. The companies powering AI infrastructure are posting record profits, and, in many cases, returning that cash to shareholders through consistent dividends and buybacks. 

As a result, this shift from stable to growth has introduced dividend investors to a whole new world of passive income opportunities. As yields on cash and bonds are expected to decline as the Federal Reserve eases up on rates, dividend hunters need to find somewhere else to park their cash and chase income streams. 

So, what are the most attractive plays? Profitable tech leaders like Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing Company (NYSE:TSM) sit at the very heart of the AI supply chain. 

Best of all, both companies combine strong free-cash-flow generation with disciplined capital allocation, a mix that is becoming increasingly rare in high-growth industries. As far as dividend investors should be concerned, these names represent one possible future for dividend investing with stocks that grow and pay. 

The 2026 AI Boom Could Create the Next Wave of Dividend Powerhouses

With the AI market on track to exceed $500 billion in spending by 2026, much of this spending is going to flow in the direction of chips, servers, and the infrastructure necessary to power the world’s AI needs. What’s notable is that most of this money is going to flow right into the hands of a small group of dominant players. This means that a concentration of demand is directly linked to profit, and could even scale faster than even the most bullish forecasts are predicting. 

For dividend investors, this is great, no, it’s fantastic news. Companies like Broadcom and TSMC already have global footprints and the financial discipline to keep rewarding investors and shareholders year after year. Let’s take a closer look at how each of these companies fits into this new landscape of income and innovation. 

Broadcom

One of the quiet juggernauts of the AI infrastructure boom, Broadcom designs the chips that connect servers, enable cloud data centers, and power the network backbone behind AI training and deployment. With hyperscalers like Google, Amazon, and Meta racing to expand their AI capacity, Broadcom’s silicon and custom networking solutions are going to enjoy unprecedented demand. 

It’s for this reason that Broadcom’s stock has already surged by over 54% this year, and the company’s fundamentals are strong. The company is generating more than $17 billion in free cash flow, all while offering an annual dividend of $2.36 for each share. 

The yield, at 0.66%, is on the lower end, but given Broadcom’s likelihood that things will look even more positive in 2026 than in 2025, expect this number to grow over the next 12 months. This is a company built on diversification, as roughly half of its revenue comes from software courtesy of the VMware acquisition, balancing out its semiconductor exposure and ensuring steady income. 

Taiwan Semiconductor Manufacturing Company 

If AI is the engine of the modern economy, it’s the Taiwan Semiconductor Manufacturing Company that is building the factory that builds it. The company is currently producing approximately 90% of the world’s most advanced semiconductors, including those used in NVIDIA’s AI GPUs, Apple processors, and countless other high-performance chips driving today’s innovation. 

The thing is, Taiwan Semiconductor Manufacturing Company’s scale advantage is unmatched, and when its fabricators are running near full capacity and the demand for advanced 3-nanometer chips is soaring, 2025 has been a very good year with shares up 45% year-to-date. The current dividend yield is at 1.2%, but its $2.28 annual dividend sits right in line with Broadcom, making these two stocks an easy opportunity for getting in while the getting is good in the AI world. 

The bottom line is that Taiwan Semiconductor Manufacturing Company isn’t just a manufacturing partner anymore, it’s become a cornerstone name in the AI economy and one of the most reliable dividend growers in the semiconductor sector.