The Tech Trio: Generating Passive Income with Dell, Garmin, and Vipshop

Written By Michael Gary Scott

Tech Stocks Back in Favor

Revered for their ability to deliver substantial gains, tech stocks have resurged in popularity over the past year, riding a wave of renewed investor sentiment. Additionally, investors have a soft spot for dividends, appreciating them not only for their ability to cushion against losses in other investments but also for the passive income stream they provide.

Quarterly Dividend Tech Titans

Among the tech stocks that offer investors the best of both worlds – capital appreciation and dividends – are Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS). These companies reward their shareholders with quarterly payouts, making them stand out in the tech sector.

Vipshop’s Strong Performance

Vipshop, holding a Zacks Rank #1 (Strong Buy), operates as an online discount retailer for brands. The company has seen a significant uptick in earnings estimates, boasting a 46% increase in the current fiscal year and projecting 7% year-over-year growth. With a solid annual yield of 2.4%, Vipshop outshines others in the Zacks Computer & Technology sector. Moreover, the company consistently surpasses earnings expectations, exceeding the Zacks Consensus EPS estimate by an average of 21% across its last four releases.

The Power of Dell Technologies

A Zacks Rank #2 (Buy), Dell Technologies offers information technology solutions. Its shares yield 1.7% annually, with a sustainable payout ratio of 26%. Analysts are optimistic about the company’s prospects, projecting a 25% rise in the $7.64 Zacks Consensus EPS for the current year, indicative of almost 8% year-over-year growth.

Garmin’s Navigation to Success

Garmin, also a Zacks Rank #2 (Buy), specializes in manufacturing navigation and communication equipment integrated with GPS technology. With an annual yield of 2.1% and a reasonable 52% payout ratio, Garmin stands out for its consistent dividend growth, boasting a 6.7% five-year annualized growth rate.

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Diversifying Income Streams

While dividend-paying stocks are often associated with stability and predictability, companies in the tech sector like Dell Technologies, Garmin, and Vipshop demonstrate that income generation can be coupled with the excitement and innovation typical of the industry. These three stocks not only offer quarterly payouts but also hold favorable Zacks Ranks, reflecting positive sentiments among analysts.

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