AI infrastructure is soaking up eye watering sums of capital, with Anthropic, Meta and others raising tens of billions to fund data centers and chips. That money has to come from somewhere. Many investors are hunting for income streams that feel steadier than the latest growth story. This article looks at three higher yielding, well covered dividend payers that may appeal if you want cash flow while the AI boom plays out.
The three stocks highlighted here offer a compelling starting point if you want exposure to higher yielding dividend payers with coverage and growth that look relatively robust on recent figures. However, if you want the absolute best, these 5 dividend aristocrats stocks are the cream of the crop.
Hershey (HSY)
Hershey leans on a portfolio of everyday treats to power its role in the Dividend Powerhouses screen, using steady cash generation from familiar snacks to help support a yield above 3% that income focused investors often look for when markets fixate on faster growth stories.
Hershey is a global confectionery and snacks group whose North America Confectionery arm generates about US$9.8b of annual revenue, with North America Salty Snacks adding roughly US$1.4b and International markets contributing just under US$1b, supporting a market value near US$34.1b.
"The 2025 cocoa shock, which involved a ~60% GAAP EPS collapse driven largely by non-cash hedge mark-to-market, obscured an underlying cash engine that remained intact."
How resilient that cash engine proves if one unseen pressure on Hershey’s pricing power and volume mix shifts will matter a great deal.
Those pressure points are exactly what the full narrative for Hershey tackles, laying out where Hershey’s cash engine could accelerate again as cocoa and pricing pressures decouple.
Bank OZK (OZK)
Bank OZK is a full service Arkansas based lender whose dividend fits the Dividend Powerhouses screen because it is funded by core interest income from loans and deposits, with all US$1.5b of recent revenue coming from community banking in the United States and backed by a roughly US$5.5b market value.
For income seekers who like the idea of being paid from everyday banking activity, Bank OZK offers a straightforward way to tap into a higher yielding dividend that is tied directly to loan interest and fee income, rather than more cyclical cash flows.
"The accelerated buildout of the Corporate and Institutional Banking platform, which now spans more than seven lending verticals and over 42 industry niches and is expected to reach a portfolio size similar to RESG by 2027, is set to increase floating rate lending spreads and fee income from roles as administrative agent or joint lead on single lender and small club deals. Management’s multi year plan to shrink RESG balances, bring construction and development exposure below regulatory concentration guidelines by late 2026 or early 2027, and shift the loan book toward a more diversified mix is expected to reduce capital tied to higher risk commercial real estate and create room for additional CIB and commercial lending growth."
What happens to that payout if this quiet shift in how Bank OZK earns its money changes the path of future margins and growth?
If that shift in how Bank OZK earns its money is what you care about, the full narrative for Bank OZK shows how the evolving mix could accelerate income potential.
First Hawaiian (FHB)
First Hawaiian runs a traditional retail and commercial bank built around deposit gathering and lending, which generates the interest income that supports its 3%+ dividend profile and underpins a roughly US$3.1b market value.
For dividend investors, First Hawaiian offers a more old fashioned income story where everyday checking accounts, mortgages and small business loans in Hawaii and on the US mainland help fund a payout comfortably above the 3% bar. A pending merger could reshape that income base.
"The all stock acquisition of TriCo Bancshares, which is expected to close near the end of 2026, is planned to create a combined First Hawaiian platform with about US$34b of assets, US$29b of deposits and 117 branches. Execution risk around the TriCo Bancshares acquisition, including integration of systems, retention of key TriCo leaders and delivery of the targeted 25% cost savings with no branch closures, could undermine the expected 6% earnings per share accretion and high teens internal rate of return."
What happens to the dividend story if a single assumption in that playbook shifts and the cash engine does not scale as cleanly as planned?
If that merger execution risk is what you keep circling back to, the full narrative for First Hawaiian shows where First Hawaiian’s dividend story could accelerate instead of stalling.
Seeking Alternatives Beyond Dividend Powerhouses
Fresh ideas move first. Slow ideas get caught late. Scan curated screeners for potential breakout momentum while it matters and still sits under the radar for now. Get in early.
- Chase early-stage upside while keeping an eye on balance sheet strength by scanning the hand picked 21 high quality undiscovered gems hiding before wider momentum really gets going.
- Track where real cash generation meets potential acceleration and filter for curated 29 high quality undervalued stocks before pricing shifts and the best entries start dropping away.
- Position ahead of big infrastructure waves and sift through carefully selected 42 power grid technology and infrastructure stocks while these stories are still flying under most investors' screens.
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