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Dividend stocks let investors combine long-term returns with consistent cash flow. Some corporations deliver high yields but are mature and underperform the S&P 500. Other high-growth firms can trounce the stock market but have low dividend yields.
However, there are some dividend stocks that offer good yields right now and have attractive long-term growth prospects. These two stocks may be some of the best dividend stocks to buy and hold at current levels.
Silicon Motion Technology (NASDAQ: SIMO) is a Hong Kong-based, dividend-paying tech company that specializes in NAND flash controllers for solid-state storage devices. Those controllers are used in smartphones, Internet of Things (IoT) devices, and other applications.
While Silicon Motion Technology has prioritized consumer products over the years, demand from artificial intelligence (AI) data center infrastructure is a long-term tailwind. The AI build-out is intensifying, with big tech aiming to spend $650 billion on AI this year. AI chips require NAND flash controllers, such as those provided by Silicon Motion Technology.
Traction in the AI infrastructure expansion helped Silicon Motion Technology deliver 46% year-over-year revenue growth for investors in Q4. CEO Wallace Kou told investors that the company expects a “significantly stronger-than-seasonal start” in the first quarter.
Acceleration has been meaningful since Silicon Motion Technology delivered only 10% year-over-year growth throughout 2025. That’s probably part of the reason that shares are up by 130% over the past year. Silicon Motion Technology also has a respectable 1.56% yield. You can get a solid yield and long-term growth, but if the stock continues to rally, the yield will shrink in a hurry.
The emerging AI stock also has plenty of cash to support future dividend growth. It has $277.1 million in cash, cash equivalents, and restricted cash. The company only distributed $16.7 million to shareholders in Q4. Its cash position can cover dividends for multiple years even if it remains unchanged, and Silicon Motion Technology’s growth implies that its cash reserves will increase over time.
Microsoft (NASDAQ: MSFT) is one of the largest tech companies on the stock market, and while it has historically had a low yield, payouts have been inching higher amid a prolonged correction.
