These 3 Tech Stocks Made Double-Digit Dividend Raises This Year
These 3 Tech Stocks Made Double-Digit Dividend Raises This Year
Eric Volkman, The Motley FoolThu, August 13, 2026 at 6:03 PM UTC
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Key Points -
Each has established its own strategy for capitalizing on the monster AI build-out.
All three companies have posted growth rates that are nothing short of stunning.
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The tech sector has been feast or famine at various points this year. It's been strongly affected by the irresistible rise of artificial intelligence (AI). This is the big story in the industry for many investors, and companies at the heart of technology have attracted great interest from the market.
Flush with cash, many have opened their wallets for generous dividend raises of at least 10%. Here's a closer look at three such recent lifts from well-known AI chipmakers -- Nvidia(NASDAQ: NVDA), Taiwan Semiconductor Manufacturing(NYSE: TSM), and Broadcom(NASDAQ: AVGO).
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Image source: Getty Images.
1. Nvidia
Of our trio, Nvidia takes the crown -- and how -- for the highest-percentage dividend raise. It hiked its payout an eye-watering 2,400%!
The big asterisk next to that figure, however, is that Nvidia started from a very low base. With a 10-for-1 stock split in mid-2024, its quarterly distribution was reset at $0.01 per share. It hiked that to $0.25 starting with the June 2026 disbursement.
That's a lot more spend on the shareholder payout, but no one should worry that Nvidia risks financial ruin. (It also added a cool $80 billion to its share repurchase program, adding to the existing $38.5 billion already under authorization.)
These days, its business is hotter than a greenhouse in August. In the fiscal first quarter of 2027, revenue surged 85% higher year over year to nearly $82 billion, while headline net income more than tripled to over $58 billion.
Simply put, Nvidia is the go-to chipmaker for the AI revolution. For many clients wanting to build out AI compute, the company's silicon isn't simply the best choice, it's the only choice. To my mind, as long as the AI revolution lasts, Nvidia's going to be right at the front of it.
The company's stock has become awfully expensive on both price and valuation. However, it conveys ownership of a business that's currently changing our world forever. I'd say that's worth a high premium, and I'd be a buyer of the stock regardless.
Nvidia's $0.25 per-share payout currently yields nearly 0.5%.
2. Taiwan Semiconductor
Taiwan Semiconductor is the chip factory (or foundry, in industry parlance) to the global tech industry. It's far and away the leading third-party semiconductor maker, creating chips for a dizzyingly large list of clients around the globe -- including, importantly, Nvidia.
This is as successful a business as you'd expect. Reflecting this, in May the company declared a nearly 17% dividend raise, from 6 New Taiwan dollars ($0.19) per share to NT$7 ($0.22). This raise hasn't kicked in yet -- it takes effect with the payout slated to occur Oct. 8, for investors of record as of Sept. 16.
The company's recent growth has been almost Nvidia-like. In July alone, it earned revenue of NT$467.6 billion ($14.5 billion), which was nearly 45% higher year over year.
Last month, it published its Q2 results, revealing a 36% increase in net sales to NT$1.27 trillion ($39.5 billion) and a 77% gain in headline net income to NT$706.5 billion ($21.9 billion). Again, as with Nvidia, Taiwan Semi is a top choice for outsourced chipmaking, and with the explosion of AI, it's reaping the rewards.
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The only factor that would make me hesitant to own the company's stock is the possibility that Taiwan's political situation with China could worsen. Yet I feel there's at least some awareness in those nations that any major conflict could be ruinous to both.
Meanwhile, the stock is cheaper on a valuation basis than Nvidia and will boast a higher dividend yield on each of its U.S.-listed American Depositary Shares, at roughly 1% based on the current exchange rate.
3. Broadcom
Broadcom distinguishes itself from its two chip industry peers by specializing in customization. It designs silicon with (and for) clients known as application-specific integrated circuits (ASICs), engineered for their particular needs.
Broadcom's customer lineup has plenty of famous names from the tech world. A leading example is its work with Alphabet's Google to develop that company's Tensor Processing Units (TPUs), which are considered among the most cutting-edge AI processors on the market.
Interestingly, in the often-circular AI industry, the TPUs that Google and Broadcom concoct are manufactured by Taiwan Semiconductor.
Broadcom began its current fiscal year (2026) with raising its quarterly dividend by just over 10% to $0.65 per share. It clearly -- and correctly -- anticipated that its recent double-digit increases in key fundamentals would be more than sufficient to fund the enhanced payout.
The company's net revenue ballooned by 48% year over year to almost $22.19 billion in fiscal Q2, reported in June. It almost doubled headline net income, to over $9.31 billion from slightly under $4.97 billion.
Broadcom has found quite a large and lucrative niche in which to operate. This has, predictably, attracted competitors, most notably the smaller but very ambitious Marvell Technology. Yet analysts put Broadcom's market share at a commanding 55% to 60%, and in the high-stakes game of AI build-outs, players like to go with a company that's trusted by many to do the work. AI is also a rising tide that will lift all the sturdy boats, so I wouldn't worry if Broadcom's share dips a little.
The company most recently paid the $0.65-per-share dividend at the end of June. It yields 0.6%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Broadcom, Marvell Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Source: “AOL Money”
