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.
5. Intercorp Financial Services Inc. (NYSE:IFS)
Number of Hedge Fund holdings: 16
During the second quarter, Lingohr Asset Management GmbH acquired a new position in Intercorp Financial Services Inc. (NYSE:IFS) following the purchase of 40,535 shares of the company’s stock, making the stock its fifth largest holding. According to a recent disclosure with the SEC, the firm’s investment in the company is now valued at approximately $1,532,000.
Few companies are able to perfectly blend customer-centricity and technological innovation as strongly as Intercorp Financial Services Inc. (NYSE:IFS). With a commitment to achieving digital excellence for its customers, the company is fostering collaborations and emphasizing key businesses and profitable growth.
The company is continually making investments in technology focused on increasing capacity, AI, user experience, and cybersecurity. As stated by Luis Felipe Castellanos Lopez-Torres, the CEO and GM of Intercorp Financial Services Inc. (NYSE:IFS),
Our ambition is to become the leading digital platform in the country with a clear focus on key businesses and profitable growth, providing a comprehensive suite of services powered by a top-tier customer experience and advanced analytics as our competitive advantage.
Intercorp Financial Services Inc. (NYSE:IFS), a subsidiary of Intercorp Perú Ltd., is a Peru-based company offering banking, insurance, wealth management, and payment services for both retail and commercial clients. Incorporated in 1897, the company is dedicated to building financial well-being.
4. HNI Corporation (NYSE:HNI)
Number of Hedge Fund holdings: 16
Strs Ohio purchased a new stake in HNI Corporation (NYSE:HNI) through the acquisition of 14,900 shares of the company’s stock during the first quarter. According to a recent filing with the SEC, the public pension fund’s investment in the company is now approximately $661,000.
Many believe that the company’s recent quarter was a great one, with revenue and adjusted EPS surpassing guidance, thanks to the strong international and corporate demand. From India and China to the UK, HNI Corporation (NYSE:HNI) is gaining traction almost everywhere. But what makes the company’s bull case even stronger is its acquisition of Steelcase, which is considered a high-risk, high-reward deal.
This $2.2 billion transaction allows the shareholders of the combined business to benefit from greater operations in contrast to what the firms have on their own. From diversification to potential synergies of $120 million annually, the monetary outcome of this collaboration is expected to materialize over the next two years.
HNI Corporation (NYSE:HNI), headquartered in Muscatine, Iowa, specializes in furnishings and residential building products mainly in the United States and Canada. Incorporated in 1944, the company is committed to fostering an improved workplace for its members.
3. XP Inc. (NASDAQ:XP)
Number of Hedge Fund holdings: 29
Analysts at BofA have reiterated their ‘Neutral’ rating on XP Inc. (NASDAQ:XP), while raising the price target to $22 from $19, reflecting a potential upside of nearly 17%. In addition to this, the firm revised its revenue growth guidance for the company, while maintaining its earnings estimates unchanged. The price upswing is driven by a shift in its valuation basis from year-end 2025 to 2026.
XP Inc. (NASDAQ:XP) is one of the companies heavily investing in technology and marketing. What most people like about the company is its focus on improving business efficiency through advancements in the tech platform, product offerings, and sales team. The company’s year-to-date return, surpassing the market average by an impressive 44.70%, is a testament to its growing popularity.
The company has created its own models that help channel its workforce, streamline operations, and enhance the level of service. As stated by Thiago Maffra, the Chief Executive Officer of XP Inc. (NASDAQ:XP),
We have been investing a lot in increasing the level of service, the way of serving our clients through financial planning, through wealth planning, succession, tax planning, and so on.
XP Inc. (NASDAQ:XP), headquartered in Grand Cayman, Cayman Islands, is a provider of financial products and services in Brazil. Founded in 2001, the company offers XP Platform, derivatives and synthetic instruments, credit cards, and life insurance products, among others.
2. Archrock, Inc. (NYSE:AROC)
Number of Hedge Fund holdings: 34
During the first quarter, Strs Ohio purchased a new stake in Archrock, Inc. (NYSE:AROC) through the acquisition of 13,100 shares of the company’s stock. According to the recent disclosure with the SEC, the firm’s investment in the company amounts to approximately $344,000.
Despite political uncertainty, Archrock, Inc. (NYSE:AROC) serves as one of the most compelling yet often overlooked investment opportunities. While the market delivered three-year and five-year returns of 85.85% and 98.15%, respectively, the company delivered 364.85% and 536.92%, respectively. These comparative statistics paint an overall positive picture of the company.
Earlier this month, Archrock, Inc. (NYSE:AROC) was issued an ‘Overweight’ rating at Wells Fargo. The research firm believes that the company is in a good position to benefit from growing U.S. natural gas supply stemming from LNG, surging AI data center power demand, and the manufacturing of onshoring. One thing is certain: the company is poised to benefit as AI and technology gain traction.
Archrock, Inc. (NYSE:AROC) is a Texas-based energy infrastructure company operating through two segments: Contract Operations and Aftermarket Services. Incorporated in 1990, the company aims to power a cleaner world.
1. Autoliv, Inc. (NYSE:ALV)
Number of Hedge Fund holdings: 37
On September 25, 2025, Colin Langan, an analyst at Wells Fargo, maintained an ‘Equal Weight’ rating on Autoliv, Inc. (NYSE:ALV), while lifting the price target to $132.00 from $126.00, implying a potential surge of about 7%. This confidence follows the company’s focus on innovation that is shaping its performance and thus, its future.
Overall, Autoliv, Inc. (NYSE:ALV) demonstrates a strong pricing power, along with sustained margins. Despite some tariffs and cost inflation concerns, the company has repeatedly outperformed the market. Thanks to automation and digitalization, the company’s financial position is improving, with stable revenue growth and shareholder-friendly capital returns through both dividends and buybacks.
Innovation has been the core strategy of Autoliv, Inc. (NYSE:ALV), and we already know a business that innovates and stays. The company is making huge updates to safety systems for reclined seats, motorcycles, and driverless vehicles, backed by as many as 12,000 patents. As long as the company keeps collaborating and entering into new markets, we have a good reason to believe in the stock’s long-term ability.
Autoliv, Inc. (NYSE:ALV) is a Sweden-based provider of passive safety systems to the automotive industry. Founded in 1953, the company is committed to saving lives.
While we acknowledge the potential of ALV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALV and that has 100x upside potential, check out our report about this cheapest AI stock.
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