AI Growth Stock With A Solid Dividend? - InvestingChannel

AI Growth Stock With A Solid Dividend?

Proprietary Data Insights

Top Electronic Component Stock Searches This Month

Rank Ticker Name Searches
#1 CLS Celestica 6,312
#2 APH Amphenol Corporation 4,672
#3 GLW Corning 2,655
#4 JBL Jabil 2,325
#5 FLEX Flex (formerly Flextronics) 1,872
#ad Gates-backed company holds the future of AI

AI Growth Stock With A Solid Dividend?

In recent weeks, The Juice has hit diversification hard. We do it in different ways, but a big focus is on looking at what we’ll call secondary ETFs. 

So, for example, starting with the SPDR S&P 500 ETF (SPY), Invesco QQQ ETF (QQQ), Schwab US Dividend Equity ETF (SCHD) and iShares Russell 2000 ETF (IWM). These are almost always the most-searched ETFs in our Trackstar database that measures investor search interest across our 100+ financial media partners. Search interest overall and in each ETF’s respective category and any sub-categories.   

By branching out into a few secondary ETFs (in terms of Trackstar popularity) in each area, you can make great strides in your quest for diversification. When you examine the holdings in an ETF, you can determine if they’ll help you diversify away from market-leading tech stocks into — 

  • other worthy tech stocks,
  • other sometimes-neglected sectors, and
  • into a wider array of dividend payers and small caps. 

Let’s do something similar with individual stocks. In today’s bottom line we’ll include a few links to previous installments to illustrate the contents of that last paragraph. 

AI is all the rage. And The Juice is on record as saying that artificial intelligence is here to stay. We also favor the big tech names you all know, including semiconductor firms, led by Nvidia (NVDA), in the VanEck Semiconductor (ETF)

For as much as we believe in this as a core approach, it makes a ton of sense to broaden your scope at least a little. Think about stocks that don’t necessarily make the AI headlines, but stand to benefit from meaningful presence in the space. 

Some of these names just so happen to pay attractive dividends alongside fantastic growth prospects and past (and, we think, potential future) share price appreciation.   

A great place to look is within the Electronic Components sub-sector within technology. Scroll to the top of the page to see the five most-searched Electronic Components stocks in Trackstar right now. 

Let’s spotlight two

First, there’s the second most-searched ticker, Amphenol Corporation (APH). Our friends at Insider Monkey recently had this to say about APH:

It’s one of the best under-the-radar AI stocks to buy according to experts since Amphenol Corporation would see a boost in demand for its products as more and more companies deploy data centers and AI infrastructure. The stock has gained about 40% so far this year.

Last month, BofA updated its US 1 List, which contains buy-rated US stocks the firm is recommending. Amphenol Corporation is part of the list. Evercore also added the stock to its Tactical Outperform list ahead of the companies’ quarterly results. Amphenol Corporation, which also pays a $0.22 per share quarterly dividend, smashed analyst estimates for its Q1 results, reporting  95% revenue growth in the period to $3.26 billion.

You don’t buy this stock for the dividend. You buy it for the “under-the-radar” AI exposure. The dividend acts as a hedge. You’re collecting a little bit of income at the same time as, hopefully, riding APH stock higher. 

The Juice’s personal favorite is the third most-searched Electronic Components stock in Trackstar right now, Corning (GLW). You might know Corning for its heavy-duty, scratch-resistant Gorilla Glass product that you find on smartphones and other devices. But you probably didn’t know that Corning is a major player in helping firms build out their AI infrastructure. 

Here’s a snippet from Corning’s most recent earnings call:

Additionally, in the Enterprise portion of our Optical business, we expect that our recent wins for AI datacenters will translate into orders and sales during the year …

… Generative AI is an especially attractive opportunity for us …

It creates significant demand for passive optical connectivity solutions and strengthens our value proposition and our competitive advantages. All datacenters consists of a front-end network connecting racks of CPUs. To meet the computational demands of AI, customers are building a new fiber-rich, second network to connect GPUs, which increases our market opportunity.

Corning pays an $1.12 annual dividend and yields right around a solid 3.0%. 

But, here again, the dividend is a hedge against any downside. You buy GLW for the “under-the-radar,” diversified AI exposure and potential share price appreciation. GLW is up nearly 31% over the last six months. That income generation acts as a buffer and reinvestment capital to buy more shares. 

The Bottom Line: As promised, here a few recent installments of The Juice where, as we did today with stocks, we look to less popular ETFs to help you diversify your portfolio:

What’s Inside The Most Popular Smart-Beta Dividend ETFs

The 5 Most Popular Small Cap Growth ETFs

The ETF Every Long-Term Investor Should Consider

What’s Inside The Top International Dividend ETFs

We did a lot of the work for you today and at those links. Feel free to take it from here. 

Buying some or all of the names mentioned here and there can go a long way to helping your rebalance and diversify your portfolio. For many investors who have won big with top tech names, particularly the Magnificent Seven, it might be time to rearrange your holdings at least a little.

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