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10 Best Innovative Stocks that Pay Dividends

In this article, we discuss 10 best innovative stocks that pay dividends. You can skip our detailed analysis of innovative stocks and their need in today’s world, and go directly to read 5 Best Innovative Stocks that Pay Dividends

Innovative stocks refer to companies that are at the forefront of technological advancements and disruptive innovations in their respective industries. These companies often introduce new products, services, or business models that have the potential to significantly impact the market and drive growth. According to a report by McKinsey & Company, companies that effectively utilize innovation as a core component of their business strategy gain a significant competitive advantage compared to their counterparts. Research has shown that these companies not only outperform others but also generate economic profits that are 2.4 times higher. In other words, by mastering the art of innovation, companies can achieve greater financial success and outshine their competitors.

In a rapidly evolving global landscape, countries and economies need to stay at the forefront of innovation to remain competitive. Through the development of new products, services, and technologies, innovative companies create jobs, stimulate investment, and contribute to overall economic progress. The US  is widely recognized for its remarkable ability to innovate and its entrepreneurial spirit. This commitment to innovation has been a key driver of America’s economic dominance. Economists estimate that roughly half of the annual GDP growth in the United States can be attributed to advancements and increases in innovation, as reported by the US Chamber of Commerce Foundation.

Also read: Most Innovative Companies in the World

As mentioned above, successful innovation drives significant growth in a business. One of the main aspects of innovation is research & development (R&D), which involves systematic and scientific exploration to develop new products, technologies, or processes. By investing in R&D, companies can enhance their capabilities, explore new ideas, and uncover innovative solutions to meet customer needs. Over the years, global R&D investments have grown across different sectors. McKinsey reported that in various industries, such as high-tech, automotive, and consumer goods, companies are allocating more than 20 percent of their earnings before interest, taxes, depreciation, and amortization (EBITDA) towards research focused on innovation.

Research from National Center for Science and Engineering Statistics (NCSES) showed that R&D activities conducted in the US amounted to a total of $717 billion in 2020. The report further mentioned that the growth of total R&D in the US, when adjusted for inflation, averaged 4.1% per year from 2010 to 2020. In contrast, during the previous decade, the average annual growth of U.S. total R&D was lower at 2.1%. Major companies like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) have allocated significant funds toward innovation activities to maintain their competitive edge.

In view of this, we have compiled a list of some of the best innovative stocks that pay dividends.

Sergey Nivens/Shutterstock.com

Our Methodology:

For this article, we scanned Insider Monkey’s database of 943 hedge funds as of Q1 2023 and picked companies that actively prioritize and promote the development of new and groundbreaking ideas, products, services, or business processes. From that list, we picked 10 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them. These companies belong to different sectors, including healthcare, technology, aerospace, and defense.

10. Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Hedge Fund Holders: 37

Hewlett Packard Enterprise Company (NYSE:HPE) is a California-based computer hardware company. It is one of the most prominent three companies that invented inkjet printers, which revolutionized printing technology. The company also introduced the world’s first programmable pocket calculator. In addition to this, the company invented the atomic clock, which possesses the incredible ability to synchronize international time to an accuracy of one millionth of a second.

On June 13, Hewlett Packard Enterprise Company (NYSE:HPE) declared a quarterly dividend of $0.12 per share, which was in line with its previous dividend. The stock has a dividend yield of 2.80%, as of July 14.

In fiscal Q2 2023, Hewlett Packard Enterprise Company (NYSE:HPE) reported revenue of $7 billion, which showed a 4% growth from the same period last year. The company’s cash position also remained strong during the quarter with an operating cash flow of $890 million and a free cash flow of $288 million. It also returned $261 million to shareholders in dividends and share repurchases, which makes it one of the best innovative stocks that pay dividends.

Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) are other innovative stocks grabbing investors’ attention.

At the end of Q1 2023, 37 hedge funds tracked by Insider Monkey reported having stakes in Hewlett Packard Enterprise Company (NYSE:HPE), the same as in the previous quarter. These stakes have a total value of roughly $1.2 billion.

9. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 49

International Business Machines Corporation (NYSE:IBM) is a New York-based multinational technology company. Also known as Big Blue, the company was known for its punch card machines and seamlessly transitioned to digital computers as they became the new technological standard. Over the years, it made significant advancements in software, computer memory, databases, personal computers, and, more recently, cognitive computing. These foundational innovations paved the way for the creation of billion-dollar businesses.

International Business Machines Corporation (NYSE:IBM) currently pays a quarterly dividend of $1.66 per share and has a dividend yield of 4.94%, as of July 12. The company has been raising its dividends consistently for the past 28 years.

International Business Machines Corporation (NYSE:IBM) experienced a positive hedge fund sentiment in Q1 2023. As per Insider Monkey’s database, 49 elite funds held stakes in the company in Q1, compared with 43 in the preceding quarter. The consolidated value of these stakes is over $1.47 billion.

8. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 51

3M Company (NYSE:MMM), a multinational conglomerate, has invented notable products throughout its history. The company introduced the iconic Post-it Notes, which have become ubiquitous in offices, schools, and households worldwide. It is also known for inventing scotch tape in 1930. This transparent adhesive tape, initially designed for sealing cellophane food packaging, quickly gained popularity for its versatility in various applications, from wrapping gifts to everyday household use.

3M Company (NYSE:MMM), one of the best innovative stocks, currently pays a quarterly dividend of $1.50 per share. The company is a Dividend King with 65 years of dividend growth track record. The stock’s dividend yield on July 14 came in at 5.89%.

As of the close of Q1 2023, 51 hedge funds in Insider Monkey’s database reported having stakes in 3M Company (NYSE:MMM), compared with 52 in the previous quarter. The collective worth of these stakes is over $697.3 million.

7. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 52

Caterpillar Inc. (NYSE:CAT) is a Texas-based construction equipment company. In the early 20th century, Caterpillar introduced the first practical track-type tractor, also known as a crawler. This design revolutionized earthmoving and construction equipment, providing better traction and maneuverability in challenging terrains.

In the first quarter of 2023, Caterpillar Inc. (NYSE:CAT) generated roughly $16 billion in revenues, up 17% from the prior-year period. The company’s operating cash flow for the quarter amounted to $1.6 billion, compared with just $313 million during the same period last year. 

Caterpillar Inc. (NYSE:CAT) is one of the best innovative stocks that pay dividends to shareholders, as it maintains a 29-year streak of consistent dividend growth. The company offers a quarterly dividend of $1.30 per share and has a dividend yield of 2.05%, as of July 14. 

Caterpillar Inc. (NYSE:CAT) was a part of 52 hedge fund portfolios in the first quarter of 2023, up from 50 in the preceding quarter, as per Insider Monkey’s data. The stakes owned by these funds have a consolidated value of over $2.88 billion.

6. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 52

Texas Instruments Incorporated (NASDAQ:TXN) ranks sixth on our list of the best innovative stocks that pay dividends. The company currently pays a quarterly dividend of $1.24 per share and its dividend yield on July 14 came in at 2.74%. It has been rewarding shareholders with growing dividends for the past 19 years.

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors. The company is credited with developing the first commercial silicon transistor in 1954, which revolutionized the field of electronics. They were one of the pioneers in the development of integrated circuits, commonly known as chips or microchips. TI’s ICs played a crucial role in miniaturizing electronic components and enabling the growth of modern computing and communication devices. The company also introduced the first handheld electronic calculator, the TI-2500, in 1967.

For the trailing 12 months, Texas Instruments Incorporated (NASDAQ:TXN) generated $7.7 billion in operating cash flow and its free cash flow for the same period was $4.4 billion. The FCF represented 23% of the company’s revenue.

In addition to TXN, Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) are some other innovative stocks grabbing investors’ attention.

As of the close of Q1 2023, 52 hedge funds tracked by Insider Monkey owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), worth collectively $3 billion roughly.

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Disclosure. None. 10 Best Innovative Stocks that Pay Dividends is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

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