Synthetic intelligence is making inroads into nearly every thing nowadays, so why not use it in my seek for dividend shares?

I requested ChatGPT to dig out “three UK dividend shares I ought to take into account for additional research“. The outcomes have been actually fairly attention-grabbing, each within the advised shares and what the automated mind noticed (or didn’t see) as key factors.

HSBC

It advised HSBC Holdings (LSE: HSBA) because the UK’s largest financial institution. In truth, with a market cap of £155bn it’s the second-most helpful inventory within the FTSE 100, solely barely behind AstraZeneca.

We’re taking a look at a forecast 5.7% dividend yield. No less than, that’s what Yahoo! Finance says. ChatGPT appears to suppose it’s 7%.

My robotic assistant picked up on the chance HSBC faces from a attainable Chinese language financial slowing and US-China commerce uncertainties. But it surely additionally instructed me about spare money the financial institution might use from promoting its Canadian operations to help dividends.

Oh, grasp on, it hyperlinks to its supply… It acquired that snippet from one thing my Motley Idiot colleague Mark Hartley wrote in September 2024. That’ll be the place it acquired the 7% dividend from too — the rising share price has lowered it since then.

Authorized & Normal

Subsequent up is Authorized & Normal (LSE: LGEN) with a forecast 8.8% yield.

ChatGPT didn’t determine any particular dangers. It does spotlight a excessive dividend payout ratio, which is nice for the money. But it surely’s additionally doesn’t present as a lot of a security buffer as some others. I’d typically favor a decrease dividend at present however with a safer progressive outlook than one with possibly much less confidence.

At full-year outcomes time in March, the corporate lifted its full-year dividend by 5% and launched a £500m share buyback for 2025. So the quick money prospects look good.

I feel we might see share price weak point from what may be one of many extra unstable shares within the sector. But when I didn’t already maintain Aviva, I feel I’d be wanting to purchase.

Phoenix

Described as “the one FTSE 100 firm providing a double-digit dividend yield“, Phoenix Group Holdings (LSE: PHNX) is the third suggestion. That’s old-fashioned too, with the share price efficiency dropping it to eight.9% now.

Phoenix posted losses in 2024, and we’re taking a look at dividends that aren’t at the moment lined by earnings. However ChatGPT pointed to sturdy money era and strong solvency measures as plus factors. Ah, I see it acquired that from Motley Idiot author Royston Wild.

There’s some stress on the technique of buying and managing closed funds as the availability of these dries up. However plans to broaden horizons ought to hopefully assist with that.

That is one other that I’d have close to the highest of my needed listing if I wasn’t already heavy in monetary shares.

AI experience?

I feel this train produced three sturdy dividend inventory candidates. And clearly I’d say ChatGPT has used high-quality sources!

But it surely makes use of out-of-date info, and it missed some essential points. Nonetheless, as a fast inventory display on which to base additional up-to-date private research, it will get a nod from me.