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Summary
- With load growth set to explode over the next several years, CenterPoint is adding juice to its dividend.
- Bookings growth is soaring in SNX's hyperscaler supply business, with dividends moving up as well.
- Data centers are boosting EME's demand, shares, and dividends.
Dividends are on the rise for three stocks that are benefiting significantly from data center demand. Their expertise spans energy generation, server supply, and construction management. Some have raised dividends as much as 60%, signaling earnings stability and potential for income investors. Let's dive into these three dividend hikes, as well as the longer-term outlooks for each name.
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CNP's Yield Tops 2% as Load Demand Looks Poised to Soar
First up is CenterPoint Energy (NYSE: CNP). The Houston-based regulated utility company put up a strong performance in 2025, delivering a total return of approximately 24%. Data center expansion is supporting CenterPoint's growth, with the firm connecting 0.5 gigawatts (GW) in data center capacity in 2025. Long-term, the company sees room to expand.
In the Houston area alone, CenterPoint forecasts its peak load demand to increase by 10 GW by 2031. This would represent a 50% increase in six years.
The company expects to generate annual adjusted earnings growth near the mid to high end of its 7% to 9% range from 2026 to 2028. According to data from Gabelli, this is one of the highest earnings growth targets of any U.S. electric utility stock over the next few years.
Tying in with its strong outlook, CenterPoint raised its quarterly dividend to 23 cents per share on Dec. 11. This represents a solid 4.5% increase versus its previous payout.
Overall, the stock now has a solid indicated dividend yield of approximately 2.1%.
SNX Finds Data Center Demand Through Hyve Division
Next up is TD SYNNEX (NYSE: SNX). In 2025, the stock delivered a total return of just under 30%. The company is a distributor of personal computers, mobile phones, and other hardware. However, through its Hyve division, the company also designs and delivers custom servers, storage, and networking solutions to the hyperscale infrastructure market.
Hyve is driving significant growth. TD SYNNEX's overall gross billings rose by 10% last quarter, but gross billings at Hyve rose by more than 50%. The company attributes this strength to "broad-based demand in cloud data center infrastructure from our hyperscaler customers."
Despite this growth, it is important to note that, as an IT solutions distributor, TD SYNNEX is a very low-margin business. Its adjusted operating margin last quarter was just under 3%. Alongside its Jan. 8 earnings release, the company announced a 9% increase to its quarterly dividend. The stock's indicated dividend yield is approximately 1.3%.
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EME's Dividend Takes a Massive Step Up
EMCOR Group (NYSE: EME) is another data center beneficiary that had a very good 2025, delivering a 35% total return. As one of the largest specialty contractors in the United States, the business is gaining momentum, driven by strong demand for data center buildouts. Remaining performance obligations (RPOs) in its Network and Communications end market jumped to $4.3 billion last quarter. This was a record figure, representing nearly a 100% growth rate.
This beat the average revenue increase across the network and communications sector of about 70%, suggesting that the company's strong growth in this area can continue.
Notably, while acquisitions have played a role in EMCOR's ability to capture data center opportunities, over 80% of the growth in this space is organic. This is a positive sign, showing that EMCOR is not inflating its growth by purchasing other companies.
Organic growth tends to be more profitable and shows management's ability to operate the company from a position of strength.
On Jan. 2, EMCOR announced a massive 60% increase to its quarterly dividend, underscoring the impressive performance of its business. The company will now pay out 40 cents per share. Trading near $700, the stock's dividend yield is still only around 0.2%. Still, EMCOR is working hard to return capital, having more than doubled its dividend over the past two years.
Watchlist Add: CenterPoint Energy
Overall, data center demand is supporting CNP, SNX, and EME in their ability to boost dividends. With strong earnings growth expected and an already solid dividend yield, CenterPoint stands out as a stock to watch going forward.
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