Rather than betting on which AI chip company will dominate, the author advocates for investing in electricity and utility stocks. Using a 'picks-and-shovels' investment strategy, he argues that regardless of which chipmaker wins the AI race, all AI systems require reliable electricity. He recommends utility stocks like NextEra Energy, Southern Company, Brookfield Renewable Partners, and Black Hills as safer bets that benefit from AI growth while providing dividend income.

Black Hills Corp (BKH), a utility provider in the Great Plains and Mountain West, is highlighted as an attractive dividend stock with a 3.8% yield and 56 consecutive years of dividend increases. The company reported 31% EPS growth on modest 3% revenue growth in Q2 FY2026, demonstrating improved efficiency. Wyoming's projected data center demand from AI hyperscalers Microsoft and Meta positions BKH for future growth, while trading at a reasonable 18x P/E ratio with Wall Street's 'Strong Buy' rating and 21% upside potential.

The article advises investors to prepare for an inevitable bear market by adopting defensive strategies. Key recommendations include investing in low-cost S&P 500 index funds through dollar-cost averaging, reducing exposure to high-volatility stocks like technology, and diversifying into stable dividend-paying companies. Historical perspective shows bear markets are temporary and followed by bull markets, so panic selling should be avoided.

AI data centers are driving massive electricity demand, causing utility bills to surge and unpaid bills to reach $25 billion by 2025. Regulated utilities face pressure from rate increases and customer payment difficulties, while unregulated power providers and alternative energy companies are positioned to benefit from AI power demand without regulatory constraints.

Bloom Energy stock dropped over 10% after Crusoe Energy paused development of a 1.8 GW data center project in Wyoming where Bloom was set to supply fuel-cell systems. However, utility company Black Hills stated the project remains on track and expects it to begin by early 2028, suggesting the pause may not directly impact Bloom's revenue. The sell-off reflects investor concerns about potential slowdowns in AI spending and data center development.

The article recommends three Dividend King stocks (companies with 50+ consecutive years of dividend increases) as defensive positions during market uncertainty: PepsiCo with a 3.9% dividend yield and diversified snack/beverage portfolio, Black Hills utility company with a 3.7% yield and planned merger with NorthWestern Energy, and Colgate-Palmolive with a 2.3% yield and 63 years of consecutive dividend increases.

NextEra Energy and Black Hills are compared as dividend investment options. NextEra Energy offers higher dividend growth (~10% historically, expected to slow to ~6%) with a 2.6% yield, powered by its clean energy business alongside regulated utilities. Black Hills is a simpler regulated utility with Dividend King status, offering a higher 3.7% yield but slower growth. The choice depends on investor preference: NextEra for dividend growth investors, Black Hills for conservative income-focused investors seeking stability.

Black Hills Corp. announced a quarterly dividend of $0.703 per share payable June 1, 2026, to shareholders of record on May 15, 2026. The company will release its 2026 first-quarter earnings on May 6, 2026, followed by a conference call and webcast on May 7, 2026.

The article highlights three AI-related dividend-paying stocks: Qualcomm, which is expanding into mobile AI processors and data centers with a 2.9% dividend yield; Oracle, which is investing heavily in AI infrastructure despite recent stock weakness, with potential for strong future growth; and Black Hills, a utility positioned to benefit from AI data center demand in the Mountain West region with a 3.7% dividend yield.

Black Hills Corp. (NYSE:BKH) and NorthWestern Energy (NASDAQ:NWE) shareholders have approved an all-stock merger that will create Bright Horizon Energy Corporation, a regional regulated energy company serving customers across eight states. The merger, announced in August 2025, is expected to close in the second half of 2026, pending federal and state regulatory approvals.

Halper Sadeh LLC, an investor rights law firm, is investigating three companies for potential securities law violations and breaches of fiduciary duties. Black Hills Corp. is merging with NorthWestern Energy Group, Clearwater Analytics is being sold to Permira and Warburg Pincus for $24.55 per share, and European Wax Center is being sold to General Atlantic for $5.80 per share. The firm is seeking increased consideration and additional disclosures on behalf of shareholders.

Black Hills Corp. (NYSE:BKH) announced a quarterly dividend increase to $0.703 per share, up $0.027 from the previous quarter. The increase marks the company's 56th consecutive year of annual dividend increases, the second-longest streak in the electric and natural gas utility industry. The company has paid annual dividends for 84 consecutive years.