DELL Edges Up Overnight: Dividend Brings Cheer, But Retail Traders Believe Stock Is Overbought

Dell announced a $0.63 per share dividend, payable on July 31.

• Dell has caught investors' attention after surging demand for its server and data center infrastructure sharply boosted sales and the stock price.
• Although DELL stock declined this month, it remained 215% up year to date.
• Stocktwits sentiment for DELL has remained ‘bearish’ for over a week.

Dell Technologies shares rose 1% in overnight trading ahead of Wednesday after the tech giant declared a quarterly dividend of $0.63 per share, payable next month.

Still, retail traders’ sentiment toward DELL stock failed to budge from bearish territory, with many arguing that the shares are overbought and due for a pullback.

On Tuesday, Dell announced that it would pay the dividend on July 31 to shareholders of record as of July 21. The company paid the same $0.63-per-share dividend in May and previously paid $0.525 per share in four tranches from May 2025 to January 2026. 

AI Momentum Drove Dell To Record High

Round Rock, Texas-based Dell has witnessed surging demand for its AI-optimized servers and data center infrastructure, as enterprises and cloud providers ramp up spending on AI workloads. 

Its Infrastructure Solutions Group (servers, storage, and networking) has been the main growth engine, offsetting slower demand in the traditional PC business. Its government business also continues to soar.

That has fueled a sharp rally in the stock, which has not traditionally been viewed as a direct AI play or associated with the outsized gains seen across much of the AI sector.

DELL stock is up a whopping 215% year-to-date. Dell surprised investors last month when it reported first-quarter sales and profit sharply higher than expectations and raised its full-year outlook, triggering a 33% gain in the stock the next day.

Retail View On Dell

However, the rally has cooled of late, with shares falling 4% in June and prompting some traders to argue that the stock may have hit its ceiling.

On Stocktwits, retail sentiment for DELL has remained ‘bearish’ for about 10 days, with message volume dropping to ‘extremely low’ on Tuesday.

“$DELL no retail investor in their right mind would invest at these levels. Institutions are just waiting for the next thing to rotate into. This is definitely over-pumped,” a trader said. 

Dell’s relative strength reading is 65.10, per Koyfin. An RSI  reading above 70 is generally considered overbought, while a reading below 30 is considered oversold.

However, traders remain cognizant that Dell is among the stocks pumped by President Donald Trump, and see spikes whenever he mentions it. Last month, at a Mother's Day event at the White House, Trump thanked the Dell family and said, "Go out and buy a Dell! They're great." 

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