Artificial intelligence (AI) has been the predominant investing theme for the last couple of years. While chipmakers, particularly Nvidia (NVDA), and hyperscalers are the obvious and much sought-after AI plays, we also have ancillary plays like utilities.
Hyperscalers are doubling down on building AI infrastructure. While the upcoming data centers would need a load of chips, they would also require a lot of electricity. They have been signing massive power purchase agreements to ensure their power-guzzling data centers have sufficient energy. American Electric Power (AEP) is among the utility companies that are plays on the burgeoning AI power demand. And, the company pays a healthy dividend, with the current yield just under 3%. Let's analyze whether the stock would fit into portfolios of dividend investors.
