"All that revenue growth may slow down if hyperscalers abruptly scale back their AI buildout plans. , for example, carried more debt on its balance sheet than cash in Q2 due to the aggressive AI expenditure. In Q4 2024, it had a net cash position of almost $22 billion. This is being called "Big Tech's debt boom" as the cash flow is not enough to fund data center development."
"Realty Income almost always tops the list if you're trying to buy a monthly dividend stock that has both defensive characteristics and great upside potential. On top of that, O stock comes with a great yield. Realty Income is a real estate investment trust that mainly has retail firms as its primary tenants. These retail companies are quite recession-resistant themselves, and Realty Income has managed to maintain very high occupancy rates through recessions. Even in 2008, the occupancy rate was 97%."
Investors face a choice between taking profits from tech stocks and rotating into monthly dividend payers as market momentum shows signs of weakening. Tech firms still beat earnings but growth margins are narrowing, and hyperscaler AI buildouts could slow revenue expansion. Some Big Tech firms increased leverage, with one carrying more debt than cash in Q2 and a net cash position near $22 billion in Q4 2024, prompting concerns about a "Big Tech's debt boom." Wall Street increasingly seeks profitability from AI investments. Monthly dividend stocks like Realty Income offer defensive income, high occupancy rates, and a 5.71% yield while trading below pre-pandemic peaks.
Read at 24/7 Wall St.
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