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4 Dividend-Paying Tech Stocks Under $20 to Watch in 2022
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It’s been a volatility-packed year in the market so far. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 17.3%, 31.9% and 23%, respectively.
The downturn in stocks has made it difficult for growth investors as valuations of high-flying stocks have crashed significantly in the past year. Investors have recognized the increasing pessimism around the possibility of a recession, rising interest rates, soaring inflation, and log-jammed supply chains, which are dragging companies and the economy down.
Nonetheless, each and every dip in the market will be a good opportunity to enter the same and tap gains from several cheap tech stocks trading under $20 like Sapiens International (SPNS - Free Report) , Ericsson (ERIC - Free Report) , Absolute Software and Hewlett Packard (HPE - Free Report) that have become highly attractive at their current valuation. Many of these stocks carry rock-solid dividend growth metrics and have a strong upside left for the rest of 2022, especially those offering hybrid-working tech, cloud services and cybersecurity solutions, which support work from home, online learning and remote health diagnosis.
The rapid adoption of cloud computing, the ongoing infusion of AI and machine learning as well as the accelerated deployment of 5G technology, autonomous & electric vehicles, AR/VR and wearables in healthcare, defense, retail and agriculture are major positives.
Year To Date Performance
Image Source: Zacks Investment Research
Our Picks
With the help of the Zacks Stock Screener, we have selected four technology stocks with a Zacks Rank #2 (Buy) or #3 (Hold), a dividend yield in excess of 2% and a five-year historical dividend growth rate of more than 0.1%. These stocks have a payout ratio of less than 60%, reflecting enough room for future dividend increases. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These stocks, currently trading for less than $20 a share, have strong fundamentals and are well-poised for growth in 2022. Moreover, the highly oversold market offers some cheap stocks with stellar prospects. While these stocks trade under $20 and can be more volatile than their costlier peers, strong bottom-line projections and positive estimate revisions in recent times point toward momentum in the mid-term.
Absolute Software is engaged in the business of providing firmware-persistent endpoint security and management solutions. ABST provides solutions for computer security monitoring and endpoint management industry. Absolute Software’s solutions include data protection, lifecycle management, enterprise mobility management and IT service management as well as data loss prevention.
The company has been benefiting from the rising demand for cyber-security solutions, owing to a slew of data breaches, and a demand rise for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are the key growth drivers. Synergies from last year’s NetMotion acquisition have enhanced Absolute Software’s product portfolio, helping it gain customers.
Currently, Absolute Software Corporation has a market cap of $563.9 million and a Zacks Rank #2. The stock is currently priced at $11.25 per share. The company has a dividend yield of 2.29% and a five-year annualized dividend growth of 0.54%. Also, the company's payout ratio is 101% of earnings at present. Check Absolute Software Corporation’s dividend history here.
Hewlett Packard Enterprise is benefiting from strong executions in clearing backlogs and increased customer acceptance. HPE’s efforts to shift focus to higher margin offerings and cost-saving initiatives are aiding its bottom-line results. HPE’s multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets, and boost margins over the long run. Its target of saving at least $800 million annually by fiscal 2022-end through a cost optimization plan is a positive.
Currently, HPE has a market cap of $15.89 billion and a Zacks Rank #3. The stock is currently priced at $12.83 per share. HPE has a dividend yield of 3.89% and a five-year annualized dividend growth of 9.37%. Also, the company's payout ratio is 17% of earnings at present. Check Hewlett Packard Enterprise’s dividend history here.
Sapiens International is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations and other leading companies to adapt quickly to change. Serving as consultants and advisors, Sapiens works with companies to analyze their current systems and develop a blueprint for aligning technology with business goals.
The company’s portfolio strength and offerings, driven by an expanding partner base, are expected to boost the top line in the near term. Moreover, the company’s expanding footprint in Europe is noteworthy. Sapiens has invested significantly in European markets through acquisitions like Calculo and sum.cumo.
Currently, Sapiens International has a market cap of $979.2 million and a Zacks Rank #3. The stock is currently priced at $18.36 per share. The company has a dividend yield of 5.18% and a five-year annualized dividend growth of 24.26%. Also, the company's payout ratio is 123% of earnings at present. Check Sapiens International’s dividend history here.
Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an Information and Communications Technology solutions provider.
Ericsson continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. The company is well-positioned to capitalize on the market momentum with its comprehensive 5G product portfolio. Ericsson has made significant investments in R&D. Ericsson is witnessing strong momentum in North America. The acquisition of Vonage underscores Ericsson’s strategy to expand its presence in the wireless enterprise. Ericsson is benefiting from solid 5G momentum worldwide. The company plans to grow its mobile infrastructure business by merging its Digital Services and Managed Services.
Currently, Ericsson has a market cap of $20.05 billion and a Zacks Rank #3. The stock is currently priced at $6.23 per share. The company has a dividend yield of 2.47% and a five-year annualized dividend growth of 24.86%. Also, the company's payout ratio is 22% of earnings at present. Check Ericsson’s dividend history here.
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4 Dividend-Paying Tech Stocks Under $20 to Watch in 2022
It’s been a volatility-packed year in the market so far. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 17.3%, 31.9% and 23%, respectively.
The downturn in stocks has made it difficult for growth investors as valuations of high-flying stocks have crashed significantly in the past year. Investors have recognized the increasing pessimism around the possibility of a recession, rising interest rates, soaring inflation, and log-jammed supply chains, which are dragging companies and the economy down.
Nonetheless, each and every dip in the market will be a good opportunity to enter the same and tap gains from several cheap tech stocks trading under $20 like Sapiens International (SPNS - Free Report) , Ericsson (ERIC - Free Report) , Absolute Software and Hewlett Packard (HPE - Free Report) that have become highly attractive at their current valuation. Many of these stocks carry rock-solid dividend growth metrics and have a strong upside left for the rest of 2022, especially those offering hybrid-working tech, cloud services and cybersecurity solutions, which support work from home, online learning and remote health diagnosis.
The rapid adoption of cloud computing, the ongoing infusion of AI and machine learning as well as the accelerated deployment of 5G technology, autonomous & electric vehicles, AR/VR and wearables in healthcare, defense, retail and agriculture are major positives.
Year To Date Performance
Image Source: Zacks Investment Research
Our Picks
With the help of the Zacks Stock Screener, we have selected four technology stocks with a Zacks Rank #2 (Buy) or #3 (Hold), a dividend yield in excess of 2% and a five-year historical dividend growth rate of more than 0.1%. These stocks have a payout ratio of less than 60%, reflecting enough room for future dividend increases. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These stocks, currently trading for less than $20 a share, have strong fundamentals and are well-poised for growth in 2022. Moreover, the highly oversold market offers some cheap stocks with stellar prospects. While these stocks trade under $20 and can be more volatile than their costlier peers, strong bottom-line projections and positive estimate revisions in recent times point toward momentum in the mid-term.
Absolute Software is engaged in the business of providing firmware-persistent endpoint security and management solutions. ABST provides solutions for computer security monitoring and endpoint management industry. Absolute Software’s solutions include data protection, lifecycle management, enterprise mobility management and IT service management as well as data loss prevention.
The company has been benefiting from the rising demand for cyber-security solutions, owing to a slew of data breaches, and a demand rise for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are the key growth drivers. Synergies from last year’s NetMotion acquisition have enhanced Absolute Software’s product portfolio, helping it gain customers.
Currently, Absolute Software Corporation has a market cap of $563.9 million and a Zacks Rank #2. The stock is currently priced at $11.25 per share. The company has a dividend yield of 2.29% and a five-year annualized dividend growth of 0.54%. Also, the company's payout ratio is 101% of earnings at present. Check Absolute Software Corporation’s dividend history here.
Hewlett Packard Enterprise is benefiting from strong executions in clearing backlogs and increased customer acceptance. HPE’s efforts to shift focus to higher margin offerings and cost-saving initiatives are aiding its bottom-line results. HPE’s multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets, and boost margins over the long run. Its target of saving at least $800 million annually by fiscal 2022-end through a cost optimization plan is a positive.
Currently, HPE has a market cap of $15.89 billion and a Zacks Rank #3. The stock is currently priced at $12.83 per share. HPE has a dividend yield of 3.89% and a five-year annualized dividend growth of 9.37%. Also, the company's payout ratio is 17% of earnings at present. Check Hewlett Packard Enterprise’s dividend history here.
Sapiens International is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations and other leading companies to adapt quickly to change. Serving as consultants and advisors, Sapiens works with companies to analyze their current systems and develop a blueprint for aligning technology with business goals.
The company’s portfolio strength and offerings, driven by an expanding partner base, are expected to boost the top line in the near term. Moreover, the company’s expanding footprint in Europe is noteworthy. Sapiens has invested significantly in European markets through acquisitions like Calculo and sum.cumo.
Currently, Sapiens International has a market cap of $979.2 million and a Zacks Rank #3. The stock is currently priced at $18.36 per share. The company has a dividend yield of 5.18% and a five-year annualized dividend growth of 24.26%. Also, the company's payout ratio is 123% of earnings at present. Check Sapiens International’s dividend history here.
Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an Information and Communications Technology solutions provider.
Ericsson continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. The company is well-positioned to capitalize on the market momentum with its comprehensive 5G product portfolio. Ericsson has made significant investments in R&D. Ericsson is witnessing strong momentum in North America. The acquisition of Vonage underscores Ericsson’s strategy to expand its presence in the wireless enterprise. Ericsson is benefiting from solid 5G momentum worldwide. The company plans to grow its mobile infrastructure business by merging its Digital Services and Managed Services.
Currently, Ericsson has a market cap of $20.05 billion and a Zacks Rank #3. The stock is currently priced at $6.23 per share. The company has a dividend yield of 2.47% and a five-year annualized dividend growth of 24.86%. Also, the company's payout ratio is 22% of earnings at present. Check Ericsson’s dividend history here.