It has been no secret that the technology sector has been at the forefront of the market’s strong bull 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 shouldn’t 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 currently a Zacks Rank #2 (Buy) and sports “B” grades for Value and Momentum in our Style Scores system. The company isn’t a particularly exciting growth story, but our consensus estimates are calling for sales and earnings to improve in the current and upcoming fiscal years. What’s more, Garmin has met or surpassed earnings estimates in eight consecutive quarters. On top of this, Garmin offers an impressive 3.32% dividend.
2. Tessco Technologies Inc. (TESS - Free Report)
Tessco Technologies manufactures and distributes wireless communication solutions, including antennas and products designed for use in the Internet of Things. After crushing earnings estimates by more than 100% last quarter, Tessco has witnessed positive estimate revision activity and earned a Zacks Rank #1 (Strong Buy). Value investors will also note that the stock’s P/S ratio of 0.24 and P/B ratio of 1.21 compare favorably to its industry peers. But we are here for the dividend investors, so it should be noted that Tessco is offering a dividend of 5.13%, giving it one of the higher yields in this space.
3. Intel Corporation (INTC - Free Report)
As a leader in the global semiconductor industry, Intel is at the forefront of nearly every emerging trend in the consumer and commercial electronics markets. Intel is currently sporting a Zacks Rank #1 (Strong Buy), as well as an “A” grade for Momentum. Investors will also note that the company’s P/E ratio of 13.73 makes it significantly “cheaper” than the sector’s average. Intel is also generating an impressive $4.44 in cash per share right now. This financial stability allows the company to reward its shareholders with a respectable 2.44% dividend.
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