Insightful Look at 3 Tech Stocks Ideal for Dividend-Focused Investors Insightful Look at 3 Tech Stocks Ideal for Dividend-Focused Investors

Written By Michael Gary Scott

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.

Zacks Investment Research
Image Source: Zacks Investment Research

The company has not shied away from rewarding its shareholders, boasting an impressive 10.5% annualized dividend growth rate over five years.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

See also  Riding the Raging Bull: A Surge in Metals & Mining Stocks

Zacks Investment ResearchImage Source: Zacks Investment Research

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.

Zacks Investment Research
Image Source: Zacks Investment Research

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.