Global Chaos, AI Fears Help Tech’s Dividend Stocks

Bloomberg reports a market rotation into dividend-rich telecommunications stocks as investors seek income and downside protection amid geopolitical turmoil and worries about AI-driven capital spending. The telecom segment of the S&P 500 is up over 7% year-to-date while the broad S&P 500 is down about 1%. Verizon and AT&T have delivered double-digit gains, with Verizon rallying sharply after subscriber growth and an expanded $25 billion buyback plan. Higher relative dividend yields (S&P communications group ~4.3%; Verizon ~5.6%; Comcast ~4.8%) versus 10-year Treasuries (below 4% in Feb–Mar) are drawing defensive flows away from high-growth, AI-linked tech names. The piece frames telecoms as a “HALO” trade (high asset, low obsolescence) and suggests the sector could outperform if growth concerns persist, supporting demand for steady cash flows over high-risk growth exposure.