Embracing Dividends in the World of Tech
Investors seek not only tech stocks but the comforting embrace of dividends. Like a sturdy umbrella during a financial storm, these dividends offer protection against market downturns while providing a gentle stream of passive income.
Remarkably, three tech giants – Microsoft (MSFT), Dell Technologies (DELL), and Qualcomm (QCOM) – have embraced the tradition of rewarding their investors with quarterly dividends.
Analyst’s Outlook on Microsoft
Behemoth Microsoft has recently dazzled, outshining the Zacks Consensus EPS estimate by almost 5% and surpassing sales expectations by 2%.
Analysts have enthusiastically revised their earnings forecasts upwards, noting a bullish trend for the current fiscal year, now estimated at $11.71 – a robust increase of nearly 9% over the past year.
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The company has not shied away from rewarding its shareholders, boasting an impressive 10.5% annualized dividend growth rate over five years.
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Dell Technologies’ Performance Surge
DELL shares have surged impressively this year, soaring over 60% and outperforming the S&P 500. Stellar quarterly results have been the driving force behind this surge.
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The current annual yield stands at 1.4%, a rate comfortably above the Zacks Computer & Technology sector average. Despite the higher cost, with hopes of AI-driven growth catalysts, shares are trading at a forward 12-month earnings multiple of 15.7X.
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Qualcomm’s Positive Momentum
Qualcomm, currently sitting at a Zacks Rank #2 (Buy), has witnessed a solid year-to-date performance, with shares up 17% against the S&P 500’s 8% gain.
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QCOM shares offer a nice 1.9% annual yield to investors. The company has shown a dedication to increasing shareholder rewards, evident in its 6.3% five-year annualized dividend growth rate.
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Concluding Thoughts
Dividend-paying stocks in the tech realm need not be mundane. Exciting companies from the technology sector also extend their hands with generous payouts to shareholders.
For those keen on blending tech exposure with quarterly dividends, the trio of Microsoft (MSFT), Dell Technologies (DELL), and Qualcomm (QCOM) stand out as prime choices.