Top Tech Stocks For Dividends
Technology companies are not known for paying dividends.
Their decision not to pay dividends makes a lot of sense.
Dividends are cash paid to investors from the company’s cash flow.
And many people want their tech stocks to keep the cash to grow the business (and stock price).
But dividends are becoming more and more popular.
People love dividend checks hitting their bank account!
So some tech stocks have decided to pay out some of their cash flow as dividends.
And these are some of my favorites.
Semiconductors make chips used in computers, smartphones, tablets, cars, and artificial intelligence (AI).
It’s a really important industry!
And Texas Instruments (ticker: TXN) is one of the top chipmakers in the world.
We probably all know about Texas Instruments.
The company made every calculator we used in school.
But Texas Instruments has evolved to do so much more than just calculators.
Now, chips made by Texas Instruments are used in vehicles, communication equipment, and personal devices like laptops and smartphones.
Texas Instruments was a trendsetter as one of the first semiconductors to make a dividend payment in 1989.
Texas Instruments has raised its dividend for 22 straight years!
And the company is averaging 20% growth in its dividend each year over the past two decades.
AI gets a lot of attention in the tech sector.
But don’t overlook hardware companies like HP Inc. (ticker: HPQ).
HP sells printers and personal electronics like laptops and tablets.
Hardware isn’t the fastest-growing industry in tech.
HP holds its own though by averaging 8% revenue growth and 16% operating income growth over the past 5 years.
And HP’s forward price-to-earnings ratio of 7.2x seems more like a utility rather than a technology company.
HP also has a great dividend.
Its dividend yield is around 4.8%, which is one of the highest in the tech sector.
And HP has grown its dividend for 15 straight years by an average of 9% each year.
Last up is Paychex (ticker: PAYX), a payroll and human resources software company.
Paychex’s profit margin of 28% makes it one of the most profitable software companies around.
And Paychex’s current 25x price-to-earnings ratio is right around its 5-year low.
Paychex has been paying a dividend since 1989, and has increased its payments each year except following the Great Recession.
While Paychex’s dividend yield of 3.9% sounds great, the company has also averaged 10% dividend growth each year over the past decade.
Owning stocks in different industries is important for diversification.
Tech stocks are very popular, but dividend inventors tend to overlook them.
What tech stocks do you own for dividends?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?
