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When thinking of dividend-paying stocks, targeted sectors often include utilities, finance, or consumer staples.
However, it may surprise some that technology companies also reward their investors handsomely.
Income-focused investors do not commonly target technology stocks, as it’s common for these companies to utilize cash to fuel growth. In addition, technology stocks tend to be volatile by nature, another aspect that steers income-focused investors away.
Still, for those who don’t mind a little extra risk on the table and still seek paydays, dividend-paying technology stocks fit the criteria nicely.
Three tech stocks – Cisco Systems (CSCO - Free Report) , ASML (ASML - Free Report) , and Broadcom (AVGO - Free Report) – have no issue paying their investors. For those seeking paydays, let’s take a closer look at each.
Cisco Systems
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals. Analysts have taken a bullish stance on the company’s earnings outlook, landing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Cisco’s annual dividend yield stands tall at 3.1%, crushing the Zacks Computer and Technology sector average. Additionally, the company’s 50% payout ratio remains sustainable.
Image Source: Zacks Investment Research
In addition, CSCO shares aren’t expensive on a relative basis, with the current 15.2X forward earnings multiple sitting nicely beneath the 16.5X five-year median and the Zacks sector average.
Image Source: Zacks Investment Research
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The stock presently sports a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Broadcom’s annual dividend presently yields a solid 2.9%, more than triple that of the Zacks Computer and Technology sector average.
And to top it off, the company’s 21% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Image Source: Zacks Investment Research
ASML
ASML is a world leader in manufacturing advanced technology systems for the semiconductor industry. The company has seen its earnings outlook inch higher across nearly all timeframes, helping land it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
While the company’s 0.7% annual dividend yield remains on the lower end, ASML’s 34% five-year annualized dividend growth rate picks up the slack in a big way. As we can see in the chart below, ASML has fully displayed a shareholder-friendly nature.
Image Source: Zacks Investment Research
Bottom Line
Technology stocks can also become passive income sources, perhaps surprising some income-focused investors that typically target the utilities, consumer staples, or finance sectors.
And all three technology stocks above – Cisco Systems (CSCO - Free Report) , ASML (ASML - Free Report) , and Broadcom (AVGO - Free Report) – reward their shareholders via dividends.
In addition, all three sport a favorable Zacks Rank currently, indicating favorable near-term business prospects.
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Seeking Income? 3 Tech Stocks Worth Considering
When thinking of dividend-paying stocks, targeted sectors often include utilities, finance, or consumer staples.
However, it may surprise some that technology companies also reward their investors handsomely.
Income-focused investors do not commonly target technology stocks, as it’s common for these companies to utilize cash to fuel growth. In addition, technology stocks tend to be volatile by nature, another aspect that steers income-focused investors away.
Still, for those who don’t mind a little extra risk on the table and still seek paydays, dividend-paying technology stocks fit the criteria nicely.
Three tech stocks – Cisco Systems (CSCO - Free Report) , ASML (ASML - Free Report) , and Broadcom (AVGO - Free Report) – have no issue paying their investors. For those seeking paydays, let’s take a closer look at each.
Cisco Systems
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals. Analysts have taken a bullish stance on the company’s earnings outlook, landing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Cisco’s annual dividend yield stands tall at 3.1%, crushing the Zacks Computer and Technology sector average. Additionally, the company’s 50% payout ratio remains sustainable.
Image Source: Zacks Investment Research
In addition, CSCO shares aren’t expensive on a relative basis, with the current 15.2X forward earnings multiple sitting nicely beneath the 16.5X five-year median and the Zacks sector average.
Image Source: Zacks Investment Research
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The stock presently sports a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Broadcom’s annual dividend presently yields a solid 2.9%, more than triple that of the Zacks Computer and Technology sector average.
And to top it off, the company’s 21% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Image Source: Zacks Investment Research
ASML
ASML is a world leader in manufacturing advanced technology systems for the semiconductor industry. The company has seen its earnings outlook inch higher across nearly all timeframes, helping land it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
While the company’s 0.7% annual dividend yield remains on the lower end, ASML’s 34% five-year annualized dividend growth rate picks up the slack in a big way. As we can see in the chart below, ASML has fully displayed a shareholder-friendly nature.
Image Source: Zacks Investment Research
Bottom Line
Technology stocks can also become passive income sources, perhaps surprising some income-focused investors that typically target the utilities, consumer staples, or finance sectors.
And all three technology stocks above – Cisco Systems (CSCO - Free Report) , ASML (ASML - Free Report) , and Broadcom (AVGO - Free Report) – reward their shareholders via dividends.
In addition, all three sport a favorable Zacks Rank currently, indicating favorable near-term business prospects.