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Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (Buy) and presents a dividend yield of about 3.3%. Investors have to pay a slight premium for GRMN right now, but a valuation of 20.7x forward 12-month earnings and a PEG ratio of 2.5 are certainly not outrageous.
Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 18.6%, which dramatically outpaces its industry’s average. Garmin is also an efficient company, evidenced by its RoE of 15.7%.
Although you might recognize the brand because of its calculators, Texas Instruments is actually one of the leading suppliers of advanced semiconductors in the world. TXN is currently sporting a Zacks Rank #2 (Buy). It should be a solid year of growth for the firm, with current estimates calling for earnings to expand by 28% in 2018.
Notably, Texas Instruments is scheduled to post its latest quarterly earnings report next week. Estimates for the period have trended higher recently, suggesting analysts have grown more bullish on the firm's business.
The company is also witnessing cash flow growth of 19.5% right now. Texas Instruments is really a cash cow, bringing in a total of $5.34 in cash per share. Management uses its solid financial position to reward shareholders with a dividend yield of roughly 2.2% currently.
NetApp is a hybrid cloud, data management company. The firm provides a range of cloud data solutions, including physical drives, software, and backup storage. The stock is currently holding a Zacks Rank #1 (Strong Buy) and offers investors a dividend yield of 1.9%.
NetApp is projected to see a long-term annual EPS growth rate of nearly 14%. The stock is trading at a slight pricey 20.3x forward earnings, but that premium is reasonable considering NTAP's growth potential. Plus, looking at the stock's PEG of 1.5, we can see that investors are getting a decent price for the near-term growth outlook, at the very least.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
3 Tech Stocks for Dividend Investors to Buy Now
Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out three of these stocks to buy now:
1. Garmin Ltd. ((GRMN - Free Report) )
Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (Buy) and presents a dividend yield of about 3.3%. Investors have to pay a slight premium for GRMN right now, but a valuation of 20.7x forward 12-month earnings and a PEG ratio of 2.5 are certainly not outrageous.
Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 18.6%, which dramatically outpaces its industry’s average. Garmin is also an efficient company, evidenced by its RoE of 15.7%.
2. Texas Instruments Inc. ((TXN - Free Report) )
Although you might recognize the brand because of its calculators, Texas Instruments is actually one of the leading suppliers of advanced semiconductors in the world. TXN is currently sporting a Zacks Rank #2 (Buy). It should be a solid year of growth for the firm, with current estimates calling for earnings to expand by 28% in 2018.
Notably, Texas Instruments is scheduled to post its latest quarterly earnings report next week. Estimates for the period have trended higher recently, suggesting analysts have grown more bullish on the firm's business.
The company is also witnessing cash flow growth of 19.5% right now. Texas Instruments is really a cash cow, bringing in a total of $5.34 in cash per share. Management uses its solid financial position to reward shareholders with a dividend yield of roughly 2.2% currently.
3. NetApp, Inc. ((NTAP - Free Report) )
NetApp is a hybrid cloud, data management company. The firm provides a range of cloud data solutions, including physical drives, software, and backup storage. The stock is currently holding a Zacks Rank #1 (Strong Buy) and offers investors a dividend yield of 1.9%.
NetApp is projected to see a long-term annual EPS growth rate of nearly 14%. The stock is trading at a slight pricey 20.3x forward earnings, but that premium is reasonable considering NTAP's growth potential. Plus, looking at the stock's PEG of 1.5, we can see that investors are getting a decent price for the near-term growth outlook, at the very least.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Here >>