It’s no secret that the technology sector has been a primary catalyst for the this year’s bull market, but that means 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.
However, dividend-yielding tech stocks do exist. 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 a few of them out below:
1. Intel (INTC - Free Report)
After once again surpassing the Zacks Consensus Estimate in its most recent quarter, Intel has seen a wave of positive earnings estimate revisions and is now a Zacks Rank #2 (Buy). The stock is also sporting “A” grades for Value, Momentum, and VGM—meaning its fundamental picture is solid. And most importantly for income investors, Intel pays out a respectable 3.14% dividend.
2. Vodafone (VOD - Free Report)
Vodafone, the largest international mobile communications firm in the world, is currently a Zacks Rank #1 (Strong Buy). The stock currently has solid “B” grades for Value, Momentum, and VGM, and its earnings are expected to grow at a steady 6.21% over the next three to five years. The mobile behemoth also pays out a whopping 5.74% dividend, making it a very attractive pick for income investors.
3. Cypress Semiconductor (CY - Free Report)
Semiconductor manufacturers have been among the strongest stocks in the tech sector this year, and Cypress has been an exciting growth pick. For the full fiscal year, profits are expected to grow by over 258% on the back of 21% sales growth. Cypress also beat the Zacks Consensus Estimate by an impressive 31.25% last quarter, and a wave of ensuing positive estimate revisions have helped the stock earn a Zacks Rank #2 (Buy). Also, the company pays out an impressive 3.28% dividend.
4. Garmin (GRMN - Free Report)
Navigation equipment and wearable technology maker Garmin has surpassed earnings estimates in seven-straight quarters and is a Zacks Rank #2 (Buy) stock. The company also has a better-than-industry-average P/E ratio, making it attractive to some value-minded investors. But more importantly, Garmin currently pays out a 3.91% dividend, which is certainly enough to make it appealing for income investors.
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