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- This Dividend Stock Is Riding the AI Boom to a Powerful Future
This Dividend Stock Is Riding the AI Boom to a Powerful Future
This tech titan is cashing in on the AI infrastructure surge and riding a wave of demand with bold growth plans and a long-term pledge to raise dividends.
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Some dividend stocks play it safe, but this one’s charging straight into the AI gold rush.
Demand for high-performance servers is soaring, and management says the opportunity ahead is nothing short of massive.
Is it time you added this growth prospect to your portfolio?
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Global Operations
From Crude to Code, Chevron’s ENGINE Is Firing on All Cylinders
Chevron (NYSE: CVX) is trading rigs for servers as its Bengaluru-based Engineering and Innovation Excellence Centre—better known as ENGINE takes center stage. What started as a modest tech hub has grown into the company’s largest outpost outside the U.S., now employing over 1,000 specialists.
The $1 billion investment behind it isn’t just about digital dashboards. It’s about transforming Chevron into a smarter, faster version of itself, one that runs on algorithms instead of assumptions.
Where AI Meets Energy
Inside ENGINE, data is the new crude. AI simulations are helping geologists pinpoint drilling zones in weeks instead of months, while digital twins fine-tune refinery performance before any real-world adjustments are made.
It’s part science, part software revolution, and it’s making Chevron’s traditional energy business feel a lot more futuristic than fossil.
The Future Is Written in Code
Chevron’s push to make ENGINE an “AI-first” hub proves it’s not stuck in the past. The Bengaluru lab is shaping how the company operates, making global energy cleaner, quicker, and a lot more data-driven. The next oil boom might not come from a barrel at all; it could come from a server room in Bengaluru.
CVX currently trades at $150 and pays a dividend of $6.84 per share, a yield of 4.54%.
Logistics
FedEx Faces a $50 Billion Question: Who’s Really the Boss?
FedEx (NYSE: FDX) is back in court as a new lawsuit aims at how it classifies its delivery drivers. The case claims the company’s independent service provider setup is less about flexibility and more about avoiding overtime under federal labor law.
Drivers say they work like employees but get treated like contractors. If the court agrees, FedEx could be on the hook for years of unpaid wages and penalties.
The Gig Model Gets Tested
At the heart of the case is a familiar modern question: how far can big companies stretch the idea of “independent work.” FedEx’s structure, where local operators hire route drivers under its branding, may now be seen as a way to sidestep payroll obligations.
A ruling against the company could ripple far beyond Memphis, forcing other gig-style logistics firms to rethink how they handle contractors.
When Flexibility Meets the Law
FedEx has spent years automating routes and cutting costs, but this legal firestorm hits just as labor expenses are rising again.
Whether it settles or fights, the decision could rewrite the playbook for how delivery companies balance efficiency and fairness. In the gig economy, the fastest delivery is the bill arriving at headquarters.
FDX currently trades at $230 and pays a dividend of $5.80 per share, a yield of 2.52%.
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Retail
The Coffee Giant’s Wake-Up Call to Itself
Starbucks (NASDAQ: SBUX) is stirring up change again with a sweeping restructuring that’s more espresso shot than sugar rush. The company is trimming underperforming stores, cutting some corporate roles, and refocusing on the locations and models that keep the caffeine — and profits — flowing.
After a deep internal review, the company found that several U.S. stores no longer fit its customer or financial blueprint. Those closures will clear the way for more drive-thru and mobile-first shops where today’s busy drinkers actually buy their coffee.
Tech Before Toppings
Alongside the cuts, Starbucks is leaning into technology and automation to speed up service and lighten the load on baristas. The plan includes smarter equipment, digital ordering systems, and AI-powered tools that predict rush hours and optimize staffing.
It’s a shift toward smarter operations and tighter efficiency rather than the breakneck expansion that once defined Starbucks’ growth.
Bitter Brew, Better Future
For investors, this transformation may sting in the short term, but it could deliver stronger margins and steadier growth later. Starbucks is finally accepting that not every cup needs to overflow and sometimes you pour less to make it stronger.
The world’s biggest coffee chain is cleaning house, and the next brew might be leaner, faster, and a whole lot stronger.
SBUX currently trades at $79 and pays a dividend of $2.44 per share, a yield of 3.07%.
Dividend Stocks Worth Watching
Dell Technologies, Inc. (NYSE: DELL) is riding a killer wave of AI demand. The stock has been on fire this week after management reaffirmed its position at the heart of the AI infrastructure boom and described the opportunity as ‘massive’. The company reported surging demand for its high-performance servers and data-center systems, driven by hyperscalers racing to expand AI capacity.
Alongside the upbeat outlook, Dell pledged to raise its dividend by at least 10% annually through 2030, signaling confidence in long-term cash flows. As a dividend investor, this is music to your ears. The blend of growth and income appeal makes Dell a rare crossover play. It’s both riding the AI wave and rewarding shareholders for staying on board.
The current dividend is 52 cents per quarter, with a 1.35% yield.
Stellantis N.V. (NYSE: STLA) has reported an impressive 13% jump in third-quarter shipments, delivering 1.3 million vehicles as strong demand for hybrids and SUVs offset a slowdown in electric car sales.
The automaker behind Jeep, Ram, and Peugeot credited its flexible production strategy and focus on higher-margin models for the rebound. North America remained its strongest performer, while Europe showed steady recovery despite lingering cost pressures.
The upbeat results suggest Stellantis is successfully steering through industry turbulence by balancing profitability and electrification while maintaining the kind of cash flow that keeps its dividend payment firmly on the road.
STLA currently pays a 68-cent annual dividend, with a 7.28% yield.
PepsiCo. Inc (NYSE: PEP) confirmed several major product updates in its Q3 earnings report, as it moves towards more natural formulations free of synthetic dyes and colorings. Amongst the products changing is the chip brand Lay's, which will no longer use any artificial flavorings or dyes.
The chips will also be produced in new flavors and using new oils. Meanwhile, Muscle Milk will also be reformulated to target consumers focused on higher-protein products. Shoppers can also expect a new “NKD” line of Doritos and Cheetos with no artificial flavors or colors as PEP continues its push towards more natural products.
PepsiCo says it expects these changes to ignite consumer demand, especially in North America.
The stock currently pays a $1.42 quarterly dividend, with a 3.93% yield.
Dividend Increases
LMT has boosted its dividend payment to $3.45, an increase of 4.5%. Its new yield is 2.72%.
AVNT has increased its dividend payment to 27 cents, a boost of 1.9%. Its new yield is 3.43%.
MSM has lifted its dividend payment to 87 cents, an increase of 2.4%. Its new yield is 3.86%.
Dividend Decreases
BMA has trimmed its dividend to 31 cents, a reduction of 16.75%. Its new yield is 7.12%.
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Upcoming Dividend Payers
RLC’s ex-dividend date for the forthcoming $1 payment is 10/13/25.
BHE’s ex-dividend date for the forthcoming 17-cent payment is 10/13/25.
STT’s ex-dividend date for the forthcoming 84-cent payment is 10/14/25.
MDLZ’s ex-dividend date for the forthcoming 50-cent payment is 10/14/25.
Everything Else
Delta says it expects to see an increase in revenue from upper-class cabins, as travelers increasingly choose premium seats over flying coach.
Levi says it already has around 70% of the stock it needs for the upcoming holiday season in place to avoid potentially higher trade tariffs. To boost profits, the company will focus on selling full-price items via its own channels.
Chevron says it will restart several processing units at its El Segundo refinery following partial shutdowns due to a fire last week.
Verizon has named former PayPal CEO Dan Schulman as its new CEO, effective immediately.
That’s all for today’s edition of the Dividend Brief.
Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!
—Noah Zelvis
DividendBrief.com