Nancy Pelosi Makes Big Bet on 2 Dividend Stocks in 2026

When Nancy Pelosi makes a move on the stock market, people pay attention.

The former House Speaker has built a reputation for remarkably well-timed stock trades. His portfolio decisions often draw intense scrutiny from retail investors trying to decode what Washington’s power players don’t know.

According to this Nancy Pelosi stock tracker, her equity portfolio is valued at about $32.5 million. Notably, he owns two mega-cap tech stocks that also pay dividends. These two stocks, Microsoft and Alphabet, will make up 22% of Nancy Pelosi’s portfolio in 2026.

Both dividend-paying tech giants are knee-deep in the AI ​​revolution and generating huge amounts of cash. Moreover, they are strategic bets on the future of artificial intelligence and cloud computing.

Let me explain why these two stocks are important and what exactly is driving their business right now.

Microsoft just wrapped up a quarter that made many CFOs weep with joy.

And here’s what’s important: Demand is so strong that Microsoft can’t keep up. CEO Satya Nadella admitted that they are capacity-constrained and will be until at least the end of their fiscal year.

Think about it for a second. According to CNBC, Microsoft is spending $35 billion per quarter on data center, GPU and AI infrastructure, and it still can’t build fast enough to meet customer demand.

AI bets are already paying out in real dollars.

• Microsoft 365 Copilot, their AI assistant for office workers, is now used by more than 90% of Fortune 500 companies.

• The product is less than 2 years old and is already driving meaningful revenue growth.

• Copilot costs $30 per user per month, in addition to existing Microsoft 365 subscriptions.

That is pure margin expansion.

GitHub Copilot, the AI ​​coding assistant, now has 26 million users. Developers are accepting hundreds of thousands of lines of AI-generated code suggestions each month, making it a mission-critical infrastructure for how modern software is built.

CFO Amy Hood made an important point on the earnings call that investors need to understand.

RELATED: Microsoft’s $80B AI Shift: What It Does for Your Money

Microsoft’s commercial remaining performance obligation, essentially, contractual revenue that has not yet been recognized, hit $392 billion.

This number has almost doubled in two years. The weighted-average term of those contracts is just two years, meaning customers are committing to large expenditures in relatively short timeframes.

While Microsoft grabs the headlines for AI, don’t forget that it’s also a dividend producer. According to Yahoo Finance, the company pays a quarterly dividend of $0.91 per share, a yield of about 0.79% at current prices.

This won’t discourage income investors, but here’s what’s important: Microsoft has raised its dividend every year since 2004, according to Fiscal.ai.

The company could easily grow its dividend as it spends more than $100 billion a year on AI infrastructure. There are many companies to choose from. Microsoft does not.

Now let’s talk about Alphabet, which just reported its first $100 billion revenue quarter. The company’s revenue rose 16% to $102.3 billion, with Google Search alone up 15% to $56.6 billion.

Here the skeptics about the alphabet are wrong. There is endless arm-twisting about AI potentially destroying Google’s search business. ChatGPT was supposed to be a Google killer. Instead, Google’s search revenue is accelerating.

Why? Because Alphabet figured out how to make AI improve search, not replace it.

CEO Sundar Pichai dropped some eye-popping numbers for AI Watch on the earnings call. He said:

• Query enhancement In fact, these AI features are accelerating, not slowing down.

• The AI fashion The feature, which allows users to interact with Search, doubled the number of queries in the quarter.

• It already is 75 million daily active users And is driving incremental growth in total queries.

Translation: People are searching more, not less, because AI makes it easier to get answers.

And here’s the kicker — Alphabet is monetizing these AI search experiences at roughly the same rate as traditional search. Advertisers are using AI to reach new customers they couldn’t target before.

For years, Google Cloud was a laggard in the cloud war, followed by Microsoft Azure and Amazon Web Services. not anymore

Google Cloud grew 34% to $15.2 billion in revenue. Operating margin expanded to around 24% this quarter from 17% a year ago.

The secret? AI infrastructure and Google’s own AI models.

• Google offers the widest array of AI chips in the industry, including both NVIDIA GPUs and its own custom TPU chips.

• Nine of the ten largest AI labs use Google Cloud.

• Anthropic, one of the most popular AI startups, recently committed to deploying 1 million Google TPUs.

Google’s own AI models are gaining serious traction.

Gemini 2.5 Pro, their latest model, has processed 1.3 quadrillion tokens, which is 20 times faster than their previous version. More than 230 million videos have been generated with Google’s Veo video creation model.

Google Cloud’s backlog—contracted but not yet recognized revenue—was up 82% year-over-year, to $155 billion. CFO Anat Ashkenazi pointed out that Google Cloud signed more billion-dollar deals in the first nine months of 2025 than in the previous two years.

Alphabet’s dividend is newer than Microsoft’s, but the company has the cash flow to support aggressive growth. The company generated nearly $74 billion in free cash flow over the last twelve months.

The quarterly dividend currently stands at $0.21 per share, a yield of about 0.25%. That’s trivial, but look at the projection.

Alphabet raised its dividend by 5% this year and has plenty of room to keep hiking, given cash generation.

According to Tikr.com data, analysts forecast the annual dividend per share to rise to $1.13 in 2029, rising to $0.84 in 2025.

The company ended the quarter with $98.5 billion in cash and marketable securities. They bought back $11.5 billion in stock during the quarter. This company can easily afford to return more cash to shareholders.

Both Microsoft and Alphabet are at an inflection point. AI infrastructure is being built. Demand is tangible and measurable in terms of billions of dollars in contracts signed.

Microsoft’s AI products are already generating billions per quarter. Google’s AI features are maintaining query growth and search monetization rates.

The dividend angle is important because it shows that Alphabet and Microsoft are mature, cash-generating businesses that are winning the AI ​​race. They are paying dividends and buying back stock while simultaneously spending all out on AI infrastructure.

If Pelosi’s track record tells us anything, it’s that she likes to buy quality companies when the market underestimates their near-term momentum. Both Microsoft and Alphabet fit that description.

The AI ​​revolution is expensive. For that, billions of rupees have to be spent on infrastructure construction. Only a handful of companies have the balance sheets and cash flow to compete on this scale. Microsoft and Alphabet are two of them.

And unlike the dot-com bubble, this spending is backed by actual customer commitments and today’s revenue, not the promise of future profits. When you’re capacity-constrained because demand exceeds supply, that’s the best problem a business can have.

Related: Google joins rare valuation milestone club on Wall Street

This story was originally published by TheStreet on January 16, 2026, where it first appeared in the Investing section. Add TheStreet as a preferred source by clicking here.