Dividends are on the rise for key names across chips, utilities, and transportation. This includes one of the semiconductor industry’s highest-yielding stocks. Investors are taking notice as this name is just now getting its feet wet in the artificial intelligence (AI) buildout.
Qualcomm Sees Hyperscaler Demand, Sports Top Yield Among Chip Stocks
First up is semiconductor giant Qualcomm (NASDAQ: QCOM). Unlike many other semiconductor stocks, Qualcomm has posted disappointing returns over the recent past. From the beginning of 2025 to the end of March 2026, Qualcomm shares were down around 15%. This came as the firm had not been able to participate much in the AI buildout, deriving most of its revenue from smartphone chips.
However, this narrative has shifted somewhat in April. In its latest earnings call, Qualcomm said it was “entering the custom silicon space, beginning our ramp with a leading hyperscaler, and we expect initial shipments in the December quarter.” Notably, Qualcomm did not specify exactly what types of chips it is developing for this customer. However, it plans to reveal more at its Investor Day in June.
Overall, Qualcomm rose nearly 40% in April, with a large 15% gain coming after its earnings report. This pushes the stock’s total return since the start of 2025 into positive territory, now sitting above 15%.
Qualcomm also announced a 3.4% dividend increase in April, moving its quarterly payment to 92 cents per share. This gives the stock a substantial indicated dividend yield of around 2.2%, with Qualcomm having a top-five yield among U.S. large-cap chip stocks. The company plans to pay its next quarterly dividend on June 25 to shareholders of record as of the June 4 close.
Southern’s Data Center Usage Rises 42%, Yield Above 3%
Next up is utility company Southern (NYSE: SO). The stock has put up solid performance since the start of 2025, providing a total return above 20%. This is only moderately behind the S&P 500’s return over this period, which sits near 25%.
For Southern, 2025 was a solid year financially, with the company posting revenue growth of 10.6% year over year (YOY), a strong acceleration versus 5.8% growth in 2024. Adjusted earnings per share (EPS) also climbed 6%, hitting the “very top” of its guidance range.
Large load demand, or energy demanded by very large customers, is spiking. Data center power usage increased by 42% YOY in its latest quarter, and the company has a large-load pipeline of over 75 gigawatts.
The company also recently announced a moderate 2.7% increase to its quarterly dividend. This brings the firm’s quarterly payment to 76 cents per share. Overall, this gives the stock a significant indicated dividend yield near 3.2%. This is below the average yield of utility stocks, which sits near 3.75%. However, it is much higher than the yield offered by the S&P 500 Index, which is only around 1%. Southern plans to make its next quarterly payment on June 8 to shareholders of record as of the May 18 close.
PACCAR Eyes North American Recovery, Boosts Dividend 6%
Truck manufacturer PACCAR (NASDAQ: PCAR) delivered below market performance in 2025, with a total return of 8%. However, the stock began to take off near the end of the year. Since the beginning of November 2025, shares have delivered a total return of well over 15%.
PACCAR faced a difficult environment in 2025, with tariffs damaging sales and profitability. Revenues fell by 17%, marking the company’s worst year for growth since 2020.
Furthermore, adjusted operating margin contracted by nearly 470 basis points, even larger than its 2019 to 2020 contraction.
However, the firm is hopeful for a recovery in 2026. PACCAR expects to sell between 230,000 and 270,000 of its Class 8 trucks to North American markets during the year. At the midpoint, this would be an approximately 7.3% increase over its 2025 Class 8 unit sales of 233,000.
Meanwhile, it sees above 16-ton European sales holding steady, projecting 300,000 units at the midpoint versus 298,000 in 2025.
PACCAR has also announced a solid 6% increase to its quarterly dividend, boosting its payout to 35 cents per share. This gives the stock a meaningful indicated dividend yield near 1.1%. PACCAR expects to make its next quarterly payment on June 3 to shareholders of record as of the May 13 close.
Qualcomm: Analysts Remain Cautious as Shares Soar
Among this group, Qualcomm is the most interesting name going forward. This giant chip company has been an afterthought amid the AI boom. The prospect that it could begin to participate meaningfully is a significant positive. This is even more true considering reports that OpenAI is working with the company to develop chips for its smartphone push.
While Wall Street analysts considerably increased their price targets on Qualcomm after its earnings, many have yet to forecast upside ahead. The MarketBeat consensus price target on Qualcomm sits near $172, implying shares are fairly valued in early May. Additionally, the average of targets updated after the company’s latest earnings report is lower, at around $170. Overall, Qualcomm still has work to do to truly shift the narrative around its stock.
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The article "Dividend Boosters: Qualcomm, Southern , PACCAR Add Juice to Yields" first appeared on MarketBeat.
