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3 Tech Stocks for Dividend Investors to Buy Right Now

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Tech stocks are likely to remain some of the most desirable on the market despite some recent volatility. But investors who want to be a part of the technology industry don’t just have to search for high-flying growth stocks. Instead, tech-minded investors can take a page out of the income investing book and focus on companies with solid dividends.

Finding a strong dividend-yielding tech stock might seem difficult, but investors should not feel too intimidated. For example, Apple (AAPL - Free Report) and some of the other biggest names in tech, pay dividends. And dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, which is a great 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 you will find some of the best tech stocks for dividend investors to target.

With all that said, check out these three dividend-paying tech stocks to buy right now:

1. Cisco Systems, Inc. (CSCO - Free Report) )        

Shares of CSCO have surged roughly 27% in 2019 to help the company reach new 52-week highs along the way. The historic networking and tech giant’s board declared a quarterly dividend of $0.35 per common last quarter to raise its full-year payout to $1.40 per share. Cisco’s new quarterly dividend marked a 6% increase from the $0.33 per share the firm paid over the last year and a 20% improvement on a two-year stack. Plus, Cisco is a Zacks Rank #2 (Buy) at the moment, with a 2.51% a dividend yield.

Looking ahead, Cisco’s adjusted Q3 fiscal 2019 earnings—which are due out May 15—are projected to surge 16.7% to reach $0.77 per share, based on our Zacks Consensus Estimate. The firm’s current full-year earnings are projected to climb roughly 18%. Plus, the company’s bottom-line is expected climb to 10.5% above our current year estimate in fiscal 2020. CSCO is also trading just below its industry’s average forward P/E at 18.8X forward 12-month Zacks Consensus EPS estimates and it has seen its earnings estimate revision picture turn more positive recently.

2. Verizon Communications Inc. (VZ - Free Report)

Many investors don’t lump telecoms into the technology basket, but industry behemoth Verizon can certainly make a case for inclusion given its innovation in 5G networking and investment in digital media content. The company is coming off better-than-expected Q1 earnings results on the back of strong wireless growth. Verizon is Zacks Rank #2 (Buy) at the moment that also sports “B” grades for Value and Growth and an “A” for Momentum in our style Scores system.

VZ currently pays a quarterly dividend of $0.6025 per share for a $2.41 a share full-year payout. What’s more, the company’s dividend yield rests at an impressive 4.26%. Investors should also note that Verizon has earned a ton of positive, longer-term earnings estimate revisions since it reported its quarterly results on April 23. Shares of VZ have climbed 16% over the last 12 months to outpace the Wireless National Market industry’s 4.5% average growth. Despite the surge, Verizon shares are trading at just 11.8X forward earnings. This marks a discount compared to the S&P 500 and is reasonable considering where its rivals, such as AT&T (T - Free Report) , sit.

3. Microsoft (MSFT - Free Report)

Shares of Microsoft have soared 28% in 2019 to help it match comebacks from Amazon (AMZN - Free Report) and other tech firms. MSFT stock has hit new 52-week and all-time highs throughout the year. In spite of the climb, MSFT stock has consistently traded at a discount compared to the Computer Software-Services Market’s average, while also outpacing its average climb. Microsoft also easily surpassed both top and bottom-line estimates last week, with Wall Street once again pleased by the firm’s Intelligent Cloud business. The unit’s revenue popped 22%. More specifically, Microsoft’s key Azure division sales skyrocketed 73%. 

Microsoft is currently a Zacks Rank #2 (Buy) and its positive earnings estimate revision activity continued following its April 24 financial release. The company’s current full-year earnings are projected to jump over 17% on roughly 13% revenue expansion. MSFT also sports an “A” grade for Momentum and is a dividend payer that has paid out a $0.46 per share quarterly dividend throughout its fiscal 2019. This marked a 9.5% increase from the prior year’s quarterly payout and an 18% jump on a two-year stack. The company’s yield rests at 1.42% at the moment.

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