Investors have long been enamored with tech stocks for their potential for high returns. Recently, these stocks have regained popularity, fueled by renewed investor sentiment.
While tech stocks are known for growth, investors also appreciate dividends for their ability to cushion against market downturns and provide a steady stream of passive income.
Stocks with Dividend Potential
Surprisingly, some tech companies like Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) offer their shareholders quarterly dividend payouts.
The Standout: Vipshop
Vipshop, a Zacks Rank #1 (Strong Buy), operates as an online discount retailer. The company has seen a notable 46% increase in earnings estimates for the current fiscal year, indicating a projected 7% year-over-year growth.
With an annual yield of 2.4%, Vipshop’s stock outperforms the average of the Zacks Computer & Technology sector. Its quarterly results have consistently exceeded expectations, surpassing the Zacks Consensus EPS estimate by an average of 21% in the last four releases.
Steady Performer: Dell Technologies
Dell Technologies, with a Zacks Rank #2 (Buy), offers IT solutions. The company provides a sustainable dividend yield of 1.7% annually, with a payout ratio of 26% of its earnings.
Analysts are bullish on Dell’s outlook for the current year, with a Zacks Consensus EPS of $7.64, up 25% from the previous year, indicating nearly 8% year-over-year growth.
Navigation Expert: Garmin
Garmin, also a Zacks Rank #2 (Buy), specializes in GPS-based navigation and communication equipment. The company boasts a 2.1% annual yield, with a manageable 52% payout ratio.
Garmin has shown dividend growth, with a solid 6.7% five-year annualized dividend growth rate.
Final Thoughts
Dividend-paying tech stocks offer a balance of excitement and stability. Investors seeking exposure to the tech sector with regular payouts can consider Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) as fitting choices.
These three stocks not only provide quarterly dividends but also carry favorable Zacks Ranks, reflecting positive analyst sentiment towards their future performance.
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