High valuations have become common in the AI sector, with the Nasdaq 100's price-earnings ratio at 40.7 compared to a historical median of 20.7. AI stocks typically reinvest generated cash, leading to low dividend yields around 1-2%. However, opportunities exist to find dividend-paying stocks that also expose investors to AI technology without inflated prices. HP Inc is an example, focusing on AI-infused products to boost growth and enhance cash flow in its business, despite challenges like tariff-related stock declines.
HP Inc is shifting its focus towards AI-infused products that can drive growth, despite its traditionally mature business model. Launching products like the EliteBook Ultra and OmniBook X, HP aims to tap into new tech opportunities.
Amidst high valuations in the AI sector, there are still opportunities to find dividend-paying stocks with meaningful AI exposure. Three companies stand out, providing solid yields without reaching exorbitant price points.
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