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. Microsoft (MSFT - Free Report)
Shares of Microsoft have surged 25% in 2019 to outpace the S&P 500’s roughly 13% climb and its industry’s 21%. The tech giant is coming off better-than-projected Q3 fiscal 2019 financial results that once again saw its cloud business stand out. Microsoft’s Intelligent Cloud revenue climbed 22%, with its vital Azure division up 73%. The firm’s expansion into cloud computing has seen it compete directly with industry giant Amazon (AMZN - Free Report) and partner with behemoths such as Walmart (WMT - Free Report) for cloud, artificial intelligence, and more. More recently, MSFT joined forces with gaming rival Sony (SNE - Free Report) for a cloud-gaming partnership.
Microsoft is also a dividend payer that has paid out a $0.46 per share quarterly dividend throughout fiscal 2019, for an annualized payout of $1.84 a share. Microsoft’s current dividend represented a 9.5% jump from the prior year’s quarterly payout. The company’s dividend yield rests at 1.44% at the moment. Plus, Microsoft’s positive, longer-term earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy) at the moment. MSFT also rocks a “B” grade for Growth in our Style Scores system. Peeking ahead, our Zacks Consensus Estimate calls for MSFT’s current full-year earnings to pop 18% on the back of 13.1% revenue growth.
2. Intuit Inc. (INTU - Free Report)
Intuit offers a variety of financial services geared toward taxes, small business money management, and personal finance. Intuit’s software-as-a-service products include QuickBooks and TurboTax and boast a total of approximately 50 million customers around the world. Going forward, Intuit’s SaaS model and cloud focus look poised to attract more clients and customers as both of these industries continue to boom. INTU last paid a quarterly dividend of $0.47 per share, up from its previous $0.39 a share payout. The firm’s dividend yield rests at 0.77% at the moment, with its stock price up 24% in 2019.
The company is scheduled to release its Q3 fiscal 2019 earnings results after the market closes on Thursday, May 23. Intuit’s adjusted third-quarter EPS figure is projected to climb 12.2% to reach $5.41 per share. Meanwhile, the company’s revenue is expected to pop 10.6% to reach $3.24 billion. Double-digit top and bottom-line growth is projected in fiscal 2020 as well. Intuit has also experienced positive earnings estimate revision activity recently. Intuit is a Zacks Rank #2 (Buy) right now that sports an “A” grade for Growth.
3. Oracle (ORCL - Free Report)
Previously-underperforming Oracle stock has outpaced the broader Computer Software-Services Market industry over the last 12 months, up 14% against the industry’s 4.5% average climb. ORCL’s positivity helps it rest near new 52-week and all-time highs. Plus, the firm is coming off a better-than-expected Q3 fiscal 2019. ORCL is also dividend payer that recently paid out a $0.24 per share dividend, up roughly 25% from its previous $0.19 payout. ORCL’s annualized dividend rests at $0.96 per share, with a yield of 1.76% at the moment. Oracle is also currently trading at 16.2X forward 12-month Zacks Consensus EPS estimates. This represents a discount compared to its industry’s 27X average and its own five-year high of 19.3X.
The historic tech giant has tried to expand its cloud business in recent years. Looking ahead, Oracle adjusted current-quarter earnings are projected to pop 8.1% to hit $1.07 per share. The tech giant’s fiscal 2019 EPS figure is expected to jump by 10.3%. Better yet, ORCL’s full-year 2020 earnings are projected to come in 10.1% higher than our 2019 estimate, in a sign of continued bottom-line expansion. Oracle is a Zacks Rank #2 (Buy) right now that boasts a “B” grade for Value.
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