3 Tech Stocks for Dividend Investors to Buy Now

Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader 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.

3 Tech Stocks for Dividend Investors to Buy Now
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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: Garmin (GRMN)

Garmin (NASDAQ:GRMN) is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #1 (Strong Buy) and presents a dividend yield of about 3.3%.

Investors have to pay a slight premium for GRMN right now, but a valuation of 19.7x forward 12-month earnings and a PEG ratio of 2.7 are certainly not outrageous.

Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 18.7%, which dramatically outpaces its industry’s average. Garmin is also an efficient company, evidenced by its RoE of 16%.

Tech Stocks for Dividend Investors to Buy Now: Texas Instruments (TXN)

Although you might recognize the brand because of its calculators, Texas Instruments (NASDAQ:TXN) is actually one of the leading suppliers of advanced semiconductors in the world. TXN is currently sporting a Zacks Rank #2 (Buy).

Tech Stocks for Dividend Investors to Buy Now: Texas Instruments (TXN)
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It should be a solid year of growth for the firm, with current estimates calling for earnings to expand by 32% in 2018.

The company is also witnessing cash flow growth of 19.5% right now. Texas Instruments is really a cash cow, bringing in a total of $5.34 in cash per share. Management uses its solid financial position to reward shareholders with a dividend yield of roughly 2.3% currently.

Tech Stocks for Dividend Investors to Buy Now: NetApp (NTAP)

NetApp (NASDAQ:NTAP) is a hybrid cloud, data management company. The firm provides a range of cloud data solutions, including physical drives, software, and backup storage. The stock is currently holding a Zacks Rank #1 (Strong Buy) and offers investors a dividend yield of 1.9%.

Tech Stocks for Dividend Investors to Buy Now: NetApp (NTAP)
Source: Shutterstock

NetApp is projected to see a long-term annual EPS growth rate of more than 14%. The stock is trading at a slight pricey 18.6x forward earnings, but that tiny premium is reasonable considering NTAP’s growth potential.

Plus, looking at the stock’s PEG of 1.3, we can see that investors are getting a decent price for the near-term growth outlook, at the very least.

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The Hottest Tech Mega-Trend of All

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