Historically, growth stocks haven’t paid dividends, because they could generate stronger returns by reinvesting excess cash into the business. But a new generation of high-margin technology stocks is changing that trend. They’re generating more free cash than they can invest, creating the opportunity to return some of it to their shareholders.
These growth-oriented dividend-payers offer an interesting opportunity for investors. Alongside the appreciation potential, they provide modest cash returns — which can be comforting when stock prices get volatile. You can see this in play with a closer look at six top dividend-paying AI stocks.
Top 6 AI Growth Stocks That Pay Dividends
I identified these six stocks by screening companies with AI exposure on these parameters:
- PE ratio higher than 20
- Dividend yield higher than 0
- Higher than 10% EPS growth expectation for this year
- Buy or strong buy ratings from analysts
The screen surfaced these stocks:
- Iron Mountain (IRM)
- Broadcom (AVGO)
- Teradyne (TER)
- Nvidia (NVDA)
- Taiwan Semiconductor (TSM)
- Micron Technology (MU)
An overview of each company follows. Metrics are sourced from company reports, and StockAnalysis.com.
1. Iron Mountain (IRM)
Iron Mountain by the numbers:
- Stock price: $130.44
- One-year price change: 35.9%
- Expected EPS growth this year: 403.2%
- PE ratio: 143.6
- Dividend yield: 2.7%
- One-year total return: 40.7%
Iron Mountain, the world’s leading records management company, manages more than 735 million cubic feet of records storage volume. The company also operates data centers, provides technology lifecycle management services, and helps businesses digitize paper files.
Iron Mountain is organized as a REIT and pays out 90% of its taxable income to shareholders. The company’s current quarterly dividend is $0.864, and the payout has been increased annually since 2023.
REITs are not typically high-growth investments, but IRM has been producing double-digit revenue growth in recent years. The company’s growth businesses — lifecycle management, data center, and digitization — delivered a 30% CAGR between 2021 and 2025. These are a nice complement to the more predictable legacy document storage business, which has grown at a 7% CAGR in the same timeframe.
2. Broadcom (AVGO)
Broadcom by the numbers:
- Stock price: $417.50
- One-year price change: 112%
- Expected EPS growth this year: 142.1%
- PE ratio: 82.9
- Dividend yield: 0.6%
- One-year total return: 114%
Broadcom makes semiconductor devices and manages a portfolio of enterprise cloud computing software. The larger semiconductor business supports AI data centers, enterprise technology centers, wireless service providers, and smartphone makers. The software side serves customers in technology, health care, financial services, and the public sector.
The company’s 0.61% dividend yield is low, but the payout has increased annually for the past 16 years.
Broadcom’s revenue growth since fiscal year 2024 has ranged from about 24% to 44%. The 2023 acquisition of VMware has been a primary contributor.
3. Teradyne (TER)
Teradyne by the numbers:
- Stock price: $361.87
- One-year price change: 407%
- Expected EPS growth this year: 82.3%
- PE ratio: 67.2
- Dividend yield: 0.14%
- One-year total return: 409%
Teradyne makes automated test equipment for semiconductors and robotics that automate manufacturing and warehousing tasks. Customers include Apple, Taiwan Semiconductor, and Amazon.
The quarterly dividend payment of $0.13 is nominal compared to Teradyne’s $350-plus stock price. The company did raise this year’s payout by $0.01 from the $0.12 paid last November. Teradyne also spent $5.5 million on common stock repurchases in the most recent quarter.
In the same period, Teradyne reported record results driven by AI-related demand. Revenue rose 87% from the prior year and GAAP EPS increased 315%.
4. Nvidia (NVDA)
Nvidia by the numbers:
- Stock price: $210.23
- One-year price change: 82.6%
- Expected EPS growth this year: 71.9%
- PE ratio: 42.41
- Dividend yield: 0.02%
- One-year total return: 82.6%
Nvidia, one of the best-known AI stocks, is the leader in AI chip design. The company’s hardware is also used in gaming, automotive, robotics, and professional visualization applications. An important differentiator for Nvidia is its software stack, which supports accelerated computing and development in its primary end markets.
Of the companies on this list, Nvidia has the lowest dividend yield at 0.02%. The $0.01 quarterly payout probably won’t hold you to the stock if the price falls dramatically. But the company’s share repurchase activity may be more compelling. In the latest quarter, share repurchases totaled $3.1 billion compared to $243 million spent on dividends.
As one of the first companies to monetize AI demand, Nvidia more doubled its revenue in fiscal year 2024, and then again in the next year. While the growth rate has since slowed, Nvidia does produce more than $200 billion in annual revenue and almost $100 billion in free cash flow.
5. Taiwan Semiconductor (TSM)
Taiwan Semiconductor by the numbers:
- Stock price: $415.45
- One-year price change: 138%
- Expected EPS growth this year: 40.8%
- PE ratio: 31.98
- Dividend yield: 0.63%
- One-year total return: 140%
Taiwan Semiconductor is the world’s largest dedicated chip foundry. The company makes semiconductors on contract for clients like Nvidia, Apple, and Broadcom.
TSM’s dividend varies from quarter to quarter, but the annual total tends to rise annually. The company’s stated strategy is to “maintain a sustainable and steadily increasing cash dividend.” In practice, the payout has been about 25% of net income.
AI and chip demand has supported revenue increases for TSM of more than 30% in fiscal years 2024 and 2025. As of March 2026, Taiwan Semiconductor is producing about $130 billion in 12-month revenue and $33 billion in free cash flow.
6. Micron Technology (MU)
Micron Technology by the numbers:
- Stock price: $659.67
- One-year price change: 729%
- Expected EPS growth this year: 679.7%
- PE ratio: 31.36
- Dividend yield: 0.09%
- One-year total return: 731%
Micron makes and sells memory and storage hardware used in AI and autonomous vehicle applications. Customers include GPU companies like Nvidia, device makers like Apple, automotive OEMs, and data center providers.
As of March 2026, Micron pays a quarterly dividend of $0.15, up from the prior payout of $0.115. The company last raised its dividend in 2022. The yield of 0.09% doesn’t materially contribute to the stock’s total return, but the company’s growth history and outlook are compelling.
Micron Technology increased revenue by nearly 62% and 49% in fiscal years 2024 and 2025.
Low Dividends, High Growth Potential
Except for the REIT Iron Mountain, the dividend potential of these growth stocks is low. But that is a good thing: These companies have high-return investment opportunities that can deliver more value over time than simple shareholder payouts. Reinvesting the cash into the business supports earnings growth, which in turn drives higher stock prices.
So while the small dividend payments from growth stocks may feel like a nice perk, they’re not essential. Most investors would rather forgo a big dividend yield in exchange for 50%-plus in total return.
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