We're still in the very early stages of artificial intelligence (AI) investing, but one thing is becoming increasingly clear: It takes a lot of computing power -- and I mean a lot -- to get AI to do anything, let alone anything useful.
As AI pioneers like Anthropic and ChatGPT creator OpenAI grow their collective user base, their demand for computing power is only going to increase. And with more demand for computing power comes more need for electrical power.
This AI-driven demand represents a huge opportunity for electric companies, many of which pay dividends. These three dividend-paying stocks could profit from the AI power surge.
Image source: Getty Images.
Biggest of the big
When it comes to electric utilities, there's no bigger name than NextEra Energy (NEE 0.06%). This massive $167 billion company owns Florida Power & Light, the largest electric utility in the country, which provides power to more than 6 million homes and businesses across the state of Florida.
Florida Power & Light is a regulated utility. Its rates are set by the Florida Public Service Commission, but the company's new contract was just finalized on Nov. 20, and goes into effect Jan. 1. The contract includes an immediate rate increase that will generate $945 million in additional revenues on top of the roughly $26 billion the company is already making each year. Then, on Jan. 1, 2027, an additional increase goes into effect that's expected to generate another $705 million annually through Dec. 31, 2029.
Better still, the contract addresses the AI power surge by creating "a new large-load tariff, the first of its kind in Florida, designed to meet the state's growing energy needs from emerging technologies while protecting existing customers from added costs." These moves should help NextEra fund its generous annual dividend increases. The company has upped its dividend payout by 10% in each of the past three years, and it now yields 2.8%.
The open market
Unlike the heavily regulated Florida Power & Light, electricity generator Vistra (VST +0.40%) sells its electricity on the open market. Most of it is sold wholesale to other electric companies and utilities that need extra capacity, but it also sells electricity directly to business and residential customers through its subsidiaries.
Because Vistra sells its power on the open market, it's not generally bound by regulated contracts, so it tends to make more money when demand for electricity is high. Not only is electricity demand the highest it's been in decades, it's expected to continue to grow in the coming years. This directly benefits Vistra's bottom line.
Vistra's share price has risen so much over the last few years that its once-impressive dividend yield has shrunk to only about 0.6%, but a booming wholesale electricity market should allow the company to grow that dividend substantially in the coming years.
NYSE: VST
Key Data Points
An offbeat electric play
When we think about electric companies that pay dividends, regulated utilities like NextEra and power generators like Vistra are often the first that come to mind. However, Vertiv Holdings (VRT 1.07%), a recent entry to the ranks of dividend payers, is a different type of company that represents a unique way to play the AI power boom.
Vertiv manufactures power systems and other electrical equipment and components for industrial applications across a number of industries. However, it's experienced a big surge in demand for its cooling and electrical systems as the AI boom has created a massive market for new data center infrastructure.
As a result, this young company has seen its share price skyrocket over the past two years, which led it to raise its dividend from $0.25 per share to $0.37 in 2024 (a 50% hike), and from there to $0.63 per share in 2025 (a 70% hike). Although the share price appreciation means it's not much in terms of percentage yield, continuing AI power demand seems likely to prompt further dividend hikes.
While better dividend yields can be found among utilities, Vertiv is the rare dividend payer that's directly benefiting from the AI buildout as opposed to benefiting indirectly from the increase in overall electricity demand, and could add diversification to a dividend portfolio.
