In this article, we will take a look at under-the-radar dividend stocks benefiting from AI.
These days, Artificial Intelligence, or AI, is the hottest theme on Wall Street, but the attention usually goes to the common mega-cap giants with high valuations. Some stocks are often overlooked by the market, despite offering both consistent dividends and opportunities to capitalize on the AI revolution.
In research, there exists a ‘neglected touch effect,’ which is used to define companies that are not very famous among analysts but have the potential to deliver an attractive upside. A 1983 study by three Cornell University professors examined the impact of 510 publicly traded firms over a decade (1971-80). The results revealed that neglected companies outperformed those held by most institutional investors. Fang, the recipient of the Smith Breeden Distinguished Paper Award, made the following comment.
If you seek out these stocks with no media coverage, they’re sort of ‘hidden gems’, they’re not very obvious, not on people’s radar screens, so investors need to do a little more homework in terms of seeking them out. But if you do so, you seem to be able to earn significantly higher returns than simply buying things that are flashing up on the Bloomberg (screen).
Given this, we will take a look at some of the best under-the-radar dividend stocks.
Our Methodology
Using Finviz stock screener, we have filtered for stocks having P/E under 25, over 10% EPS growth in the next 5 years, and over 2% dividend yield. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s Q2 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7. MINISO Group Holding Limited (NYSE:MNSO)
Number of Hedge Fund holdings: 12
MINISO Group Holding Limited (NYSE:MNSO) has unveiled an in-house proprietary IP incubation plan to support its intellectual property portfolio and thus advance its growth prospects. In line with its strategy, the giant has collaborated with as many as nine artists to create new designs and collections.
Since June, YOYO, one of the new IPs, has gained customer traction, with sales both online and in-store. As soon as YOYO expands internationally, MINISO Group Holding Limited (NYSE:MNSO) will leverage the momentum. What’s even more interesting is that the company’s other IPs, including DUNDUN Chicken, PenPen Penguin, Gift Bear and Friends, have contributed significantly to its growth.
If we consider the latter alone, Gift Bear and Friends has generated more than $28.1 million in sales since its reveal in October 2023. As cited by CEO Ye Guofu,
Our investment in proprietary IP is not a short-term commercial strategy, but a long-term commitment rooted in emerging trends.
MINISO Group Holding Limited (NYSE:MNSO) is a Chinese investment holding company engaging in retail and wholesale of design-led lifestyle and pop toy products, including home decor products, accessories, beauty tools, and toys. Founded in 2013, the company also owns a character-themed store in Vietnam.
6. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Number of Hedge Fund holdings: 12
During the first quarter, Rhumbline Advisers trimmed its stake in Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) by 12.9% through the sale of 21,761 shares. According to a recent disclosure with the SEC, the firm now owns 146,534 shares of the company’s stock, translating to an investment worth $911,000.
What’s interesting about Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is its focus on strategic infrastructure investments for the much-anticipated technology transitions. As revealed in the latest earnings, the company allocated more than 80% of the quarter’s CapEx to mobile and fixed networks in an attempt to further solidify its capacity for communication services.
Additionally, Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) invested in data centers to capitalize on the growing demand. For the last 30 years, the company has maintained a strong market presence with its innovative offerings and disciplined expense management.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a Turkish provider of converged telecommunication and technology services. The core offerings of the company, formed in 1993, include tower and satellite services, fixed data services, international roaming services, and voice services.
