Tech stocks have been unpredictable over the past few weeks, but there is no question that the technology sector has been at the forefront of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out three of these stocks to buy now:
Tech Stocks for Dividend Investors to Buy Now: Cisco Systems, Inc. (CSCO)
Cisco Systems, Inc. (NASDAQ:CSCO) is a worldwide leader in the information technology industry. The company develops and sells networking hardware, telecommunications equipment, and other high-technology services and products.
Cisco is currently sporting a Zacks Rank #2 (Buy) and is gearing up for another strong earnings season. Consensus estimates for the period are trending upward, and growth is expected on the top and bottom lines. Meanwhile, CSCO stock is trading with a reasonable Forward P/E of 18.9.
Cisco is using its current strength to reward investors and currently provides a dividend yield of about 2.9%.
Tech Stocks for Dividend Investors to Buy Now: Seagate Technology PLC (STX)
Seagate Technology PLC (NASDAQ:STX) is a global leader in hard drive manufacturing. It offers a range of disk drive products for the enterprise, client computing, and client non-computing market applications.
Seagate is currently sporting a Zacks Rank #2 (Buy) and an “A” grade for Value in our Style Scores system. The firm is currently generating a staggering $6.78 in cash per share on the back of 32% cash flow growth.
STX takes advantage of its strong cash position by offering investors a dividend of 4.2%, making it one of the most attractive income options in the entire technology sector.
Tech Stocks for Dividend Investors to Buy Now: HP Inc (HPQ)
Forming as a result of the split of Hewlett-Packard Company in 2015, HP Inc (NYSE:HPQ) handles the brand’s PC and printing products.
The company is attracting positive analyst sentiment after a solid earnings beat and now sports a Zacks Rank #2 (Buy). Earnings and revenue are now expected to improve by 17% and 9%, respectively, in the current fiscal year.
HPQ stock also has an “A” grade for Value and is trading at an attractive 11.1x forward 12-month earnings. HPQ also has plenty to offer income investors with its 2.6% annual dividend.
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