Tech stocks have been all the rage lately, riding high on the artificial intelligence (AI) frenzy. Investors are dancing to the tune of tech’s outsized gains, propelling the sector to the top of many favorites lists.
While tech stocks steal the spotlight, dividends have their own fanbase. They offer a safety net against market downturns and provide investors with a steady stream of passive income. As a bonus, dividend-paying companies are often sturdy and can share their profits with shareholders without flinching financially.
For those eyeing a mix of both worlds, tech and dividends, Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) are here to play an income game.
Vertiv Shares Skyrocket by 100% YTD
In the bullish arena of 2024, Vertiv shares are a heavyweight, soaring over 100% this year. Fuelled by the AI craze, the company outshines the S&P 500 by a large margin. Analysts are placing hefty bets on the company, revising their forecasts 64% higher for this fiscal year.
Image Source: Zacks Investment Research
Despite offering a modest 0.1% annual yield, Vertiv remains a prime choice for income-driven investors seeking AI exposure, especially in the data center arena.
NetApp Exceeds Expectations Quarter after Quarter
NetApp shares hold their ground, boasting a nearly 40% increase year-to-date, fueled by stellar quarterly performances. The company consistently overshadows our EPS estimates in the last four releases by an average of 8%.
Image Source: Zacks Investment Research
The current 1.6% annual yield of NTAP shares surpasses the Zacks Computer and Technology sector average. With a track record of increasing dividends three times in the last five years, NetApp is a solid player in the dividend game.
Roper Technologies Paving the way with Dividend Growth
Roper Technologies’ stock may not have sprinted this year, but it’s certainly picking up speed, marking a 6% increase in the past month compared to the S&P 500’s 2% rise. The company’s consistency shines through, surpassing earnings and revenue forecasts for the seventh straight quarter.
Sales are on a strong upward trajectory, with ROP posting double-digit year-over-year sales growth rates in the last six periods. While the current 0.5% annual yield may seem meager, Roper displays commitment with a solid 10.2% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The Verdict
Dividend-paying stocks are not the dullards they are often made out to be; tech companies are now rewarding investors with periodic payouts.
For those on the lookout for a blend of tech exposure and dividend income, Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) present an appealing trifecta.
Furthermore, all three companies boast a favorable Zacks Rank, indicating a wave of optimism among analysts.
