Investors seeking dividends won't find much to like with most artificial intelligence (AI) stocks. Sure, a few AI giants such as Apple, Meta Platforms, Microsoft, and Nvidia pay dividends. But all of these companies' dividend yields are well below 1%.

IBM is a notable exception with its forward dividend yield of over 3.9%. However, its stock performance has lagged well behind the S&P 500 in recent years. Since 2014, IBM stock has even declined slightly.

Is there any good AI option for dividend investors? Maybe. Meet an AI stock that has increased its dividend for over 50 consecutive years.

Retail giant, dividend royalty

You're probably quite familiar with Walmart (WMT 2.21%). The company is the largest retailer in the world based on retail revenue. Walmart operates more than 10,500 stores and e-commerce websites in 19 countries.

In its fiscal year 2024 (Which ended Jan. 31, 2024), Walmart generated total revenue of more than $648 billion. It posted a profit of $15.5 billion. The giant retailer used $6.1 billion in its latest fiscal year to pay dividends.

Rewarding shareholders with dividend payments is nothing new for Walmart. The company has increased its dividend for 51 consecutive years, making it part of the elite group known as Dividend Kings. Earlier this year, Walmart raised its dividend payout by 9%.

Walmart stock has also performed well. It has delivered greater gains than the S&P 500 over the last one-year, three-year, and five-year periods.

But is Walmart an AI stock?

I suspect some are thinking, "Sure, Walmart is a dividend stock, but is it an AI stock?" You might be surprised to learn that the answer is a resounding "yes."

Walmart isn't an AI stock only because the company uses AI extensively. It does incorporate AI throughout its operations, of course, and has for years. Walmart uses AI for supply chain management, helping online shoppers, and more. But if using AI was the sole criterion for being an AI stock, most big companies would probably make the list.

What should be the requirement to be legitimately included as an AI stock? I think a company should develop and market technology that either supports AI or harnesses AI. The companies mentioned earlier -- Apple, Meta, Microsoft, Nvidia, and IBM -- clearly qualify. And so does Walmart.

In March 2024, Walmart Commerce Technologies (Walmart's unit that sells technology solutions to other retailers) launched an AI-powered route optimization software application. This software helped Walmart improve its internal trucking operations by reducing miles driven. The company is now offering its route optimization technology to other businesses. Since Walmart has developed and is marketing technology that harnesses AI, it's an AI stock in my view.

Is Walmart a great AI alternative for dividend investors?

Some investors will probably find Walmart's forward dividend yield of 1.28% disappointing. There are plenty of other stocks that offer more attractive yields. However, Walmart could be a good pick for anyone wanting to buy a stock with a solid AI connection that pays a dividend that isn't embarrassingly low (for example, Nvidia's yield is a tiny fraction of 1%).

Walmart is resilient, holding up well during economic downturns. It's been a big winner for investors over the long term and in recent years. I also think the company could be a huge beneficiary of AI by increasing the efficiency of its operations.