These Top Dividend Stocks Are Investing Another $21 Billion to Support AI by 2030

Source The Motley Fool

Artificial intelligence (AI) has the potential to be a transformative technology. It can help improve decision-making, increase efficiency, and create more personalized experiences. These benefits are leading companies to pour billions of dollars into developing AI tools.

The technology will also require a tremendous investment in infrastructure to support its data and power needs. That's providing many new investment opportunities for leading infrastructure investor Brookfield Asset Management (NYSE: BAM) and two of its affiliates, Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) and Brookfield Renewable (NYSE: BEPC)(NYSE: BEP). They're planning to pour 20 billion euros (nearly $21 billion) into supporting the deployment of AI infrastructure in France by 2030. That investment should give this trio plenty of power to continue growing their high-yielding dividends in the coming years.

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Supporting France's AI ambitions

Brookfield Asset Management is a leading global alternative asset manager. It has over $1 trillion in assets under management across infrastructure, renewable power and transition, private equity, real estate, and credit. The investment firm has invested heavily in major global themes like digitalization and decarbonization through its funds and listed affiliates. For example, in 2023, Brookfield Asset Management and Brookfield Infrastructure acquired a stake in French data center operator Data4. They deployed $2.5 billion into the company to enter the European data center market. That deal was one of several data center platform acquisitions Brookfield has made in recent years to build out its global platform.

The companies are now using that platform as a springboard to capitalize on the massive infrastructure investment required to support AI. They've agreed to invest up to 15 billion euros ($15.5 billion) through Data4 to build over 500 megawatts of data center capacity in France by 2030. That investment will make France the largest single market for Data4 in the future.

Brookfield also plans to invest an additional 5 billion euros ($5.2 billion) in France across associated AI infrastructure, like data transfer, chip storage, and energy generation by 2030. The company is in a strong position to expand its energy-generation capabilities in France after Brookfield Renewable and several partners agreed to acquire French renewable energy company Neoen in a $6.1 billion deal last year. Neoen has a large backlog of renewable energy projects in France, Australia, and the Nordics region.

These new investments are now paying big dividends as they've positioned Brookfield to capitalize on a significant AI investment opportunity in France. They also put it in a strong position to continue capturing additional investment opportunities in the regions where those companies operate. The Brookfield entities are also capitalizing on similar opportunities across the U.S. and Europe. Major investment initiatives include its partnership with Intel to co-invest in a $30 billion landmark semiconductor foundry in Arizona and a more than $10 billion framework agreement to develop renewable energy for Microsoft across the U.S. and Europe from 2026 through 2030.

Powerful growth accelerators

Brookfield Asset Management and its affiliates expect their AI-related investments to help fuel accelerated earnings growth over the next several years. For example, Brookfield Asset Management estimates that its multitude of growth catalysts (including AI-related investments) will help increase its distributable earnings per share at an 18% compound annual rate over the next five years. That supports its plans to increase its dividend (2.6% current yield) at a more than 15% yearly rate.

Meanwhile, Brookfield Infrastructure and Brookfield Renewable expect to deliver more than 10% annual growth in their funds from operations (FFO) per share over the next several years, driven by their investments to support digitalization and decarbonization. That supports their plans to increase their high-yielding dividends (4.2% for Brookfield Infrastructure and 5.5% for Brookfield Renewable) by 5% to 9% annually.

Great ways to cash in on the AI investment boom

Brookfield Asset Management, Brookfield Renewable, and Brookfield Infrastructure plan to invest more than $20 billion over the next several years to support AI expansion in France alone. That's part of their massive global investment to support AI infrastructure. These investments should help power double-digit annual earnings growth and healthy dividend increases for all three high-yielding entities. That combination of earnings and income could give these stocks the fuel to produce robust total returns in the coming years, making them great ways to cash in on the AI investment boom.

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Matt DiLallo has positions in Brookfield Asset Management, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, and Intel and has the following options: short March 2025 $20 puts on Intel. The Motley Fool has positions in and recommends Brookfield Asset Management, Intel, and Microsoft. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners and recommends the following options: long January 2026 $395 calls on Microsoft, short February 2025 $27 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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