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3 Tech Dividend Stocks to Buy Now

Strong cash flows and sturdy yields make these attractive holdings for any long-term portfolio

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Tech Dividend Stocks to Buy: Seagate Technology (STX)

tech-dividend-stocks-to-buy-now-stx-stockDividend Yield: 3.4%

The traditional storage business has long been a brutally competitive one. However, thanks to consolidation, the industry has been on the mend, and better pricing and margins have followed as a result.

Storage also is being driven forward by several technologies, such as mobile, Big Data and cloud computing.

One of the top players in the space is Seagate Technology (STX). Seagate’s product line includes hard drives as well as cloud-based backups and data protection. A key to the success of STX has been a focus on R&D, with the company making about $1 billion in annual expenditures. In fact, Segate has more than 5,500 patents issued in the U.S. alone.

Yes, Seagate still relies heavily on the PC business, which has been in a perpetual slow decline and weighed on other blue-chip tech stocks such as Intel (INTC) and Microsoft (MSFT). Still, STX has been countering by transitioning to higher-growth categories via acquisitions.

On the dividend side: Seagate continues to pump out hefty cash flows (that came to about $1.5 billion for the past six months) that should keep feeding the payout. Meanwhile, STX also trades at a reasonable 11 times earnings.

While STX has had a bumpy start to 2014, it remains in a long-term uptrend. And the upside of Seagate’s 7% year-to-date losses is that has slightly sweetened the current yield to 3.3%.

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