The Surprising Power Of AI Dividend Machines

Artificial Intelligence, Dividend Growth, Dividend Investing, ETFs, Funds, High-Yield Investing, Options, Tech

When someone learns that I write about stock market investing, I am often asked about investing in Artificial Intelligence (AI). The impact of AI on business, investing, and everyday life is rapidly expanding.

There are numerous moving parts in the AI universe. Of course, you have the actual artificial intelligence programs, but they need a massive support system of data centers and electricity to power those data centers. For example, chip maker NVIDIA Corp. (NVDA), which manufactures the high-speed chips required for AI, has been a winner for investors.

Robot hand typing on laptop to evoke the idea of artificial intelligence and robotics.

A couple of AI-focused covered call ETFs offer professionally managed portfolios with option overwriting for income.

The REX AI Equity Premium Income ETF (AIPI) launched on June 4, 2024, so it has a bit of history. AIPI has $353 million in assets. The total return for AIPI since launch was 22.8%. Remember that the market went through a steep bear market in March and April.

AIPI pays monthly dividends and has a current distribution rate of 34.8%. Here are the top holdings.

NameWeightingNet ValueShares Held
NVIDIA CORP9.92%$34,743,262.12192,836
Palantir Technologies Inc. Class A9.80%$34,338,920.40217,170
Crowdstrike Holdings Inc. Class A9.46%$33,146,022.0074,991
ARM HOLDINGS PLC5.80%$20,315,370.70142,514
CADENCE DESIGN SYS INC3.94%$13,784,361.0338,907
INTEL CORP3.70%$12,971,752.11520,327
MICRON TECHNOLOGY INC3.34%$11,688,820.0095,810
ARISTA NETWORKS INC3.32%$11,643,169.4185,467
APPLE INC3.30%$11,546,836.5649,651
ALPHABET INC-CL A3.21%$11,245,914.6853,137

The YieldMax AI & Tech Portfolio Option Income ETF (GPTY) came to the market on January 22, 2025. This ETF has $50 million in assets under management.

GPTY pays weekly dividends and has a current distribution yield of 34.2%. Here are the fund’s top holdings.he stock symbol OKLO. Terrestrial Energy will combine with a SPAC for a planned fourth-quarter IPO.

NameWeightingNet ValueShares Held
NVIDIA Corp9.51%$4,820,988.8626,758
Palantir Technologies Inc8.24%$4,180,060.3226,436
C3.ai Inc5.44%$2,758,486.98159,358
Meta Platforms Inc5.36%$2,718,267.093,619
Microsoft Corp5.09%$2,582,345.885,067
Intel Corp4.89%$2,478,989.3499,438
Alphabet Inc4.54%$2,300,526.8010,870
Snowflake Inc4.52%$2,293,356.009,516
Apple Inc4.45%$2,256,762.249,704
Broadcom Inc4.32%$2,189,563.107,094

Since GPTY was launched, it has been the best-performing of the two ETFs. Its total return was 7.2% compared to 2.05% from AIPI. Since the bottom of the bear market on April 8, GPTY has returned 45.9%, compared to 33.8% for AIPI.

The future could be different, and I think owning both would be a good way to get investing exposure to artificial intelligence.

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