Forget AI Stocks, Buy These 2 Big Dividends Instead

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Forget AI Stocks, Buy These 2 Big Dividends Instead

AI stocks are currently overvalued, leading to potential losses for uninformed investors. Instead of following trends, focusing on companies with solid cash flows and dividends is a more prudent strategy. The article highlights two investment picks that offer attractive yields of up to 9%.

The discussion emphasizes the importance of understanding the fundamentals behind investments, especially in the volatile AI sector. Companies like Microsoft and OpenAI are making significant investments in AI infrastructure, but the profitability of these ventures remains uncertain. The suggested picks, UTG and ARDC, are positioned to provide steady income amidst market fluctuations.

• AI stocks face high valuations and potential losses for trend-followers.

• Investing in companies with solid cash flows is emphasized over speculative AI stocks.

Key AI Terms Mentioned in this Article

AI Infrastructure

The article discusses significant investments in AI infrastructure by major tech companies, indicating a growing demand for such resources.

Data Center

The article highlights the expansion of data centers by companies like Microsoft and Google to support AI operations.

Capital Expenditure (CapEx)

The article notes that OpenAI is projected to incur significant CapEx in 2024 for cloud infrastructure.

Companies Mentioned in this Article

Microsoft

Microsoft is investing heavily in AI infrastructure, including a new data center with OpenAI.

OpenAI

OpenAI is highlighted for its substantial projected losses due to high capital expenditures on AI infrastructure.

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