SPECIAL REPORT The Top 7 Stocks for 2024

3 Dividend-Paying Tech Stocks to Boost Your Portfolio in November

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  • Tech’s resurgence shines a spotlight on these financially stable tech dividend stocks.
  • Oracle (ORCL): With a stellar 23.5% YTD surge, a 29% rise in organic cloud sales, and eyes set on a vast AI horizon, Oracle showcases promising growth and a 1.6% dividend yield.
  • Texas Instruments (TXN): Navigating the analog chip downturn, Texas Instruments’ resilience is bolstered by a blueprint for future dominance, a juicy 3.67% yield and a 17-year dividend growth legacy.
  • American Tower (AMT): American Tower stands out with its dual ownership model, surpassing third quarter expectations and hinting at a 5.2% annual EBITDA boost, complemented by a 3.7% dividend yield.
tech dividend stocks - 3 Dividend-Paying Tech Stocks to Boost Your Portfolio in November

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In the ever-evolving financial landscape, 2023 has marked a triumphant return for tech stocks. Bouncing back from notable downturns last year, these stocks are now outpacing the broader market. Even as economic momentum slows, investors are flocking to industries flashing long-term growth potential. Moreover, while the allure of innovation tempts many, there’s a hidden gem in the mix in tech dividend stocks.

However, dividend-paying tech stocks paint a slightly different picture, showcasing the industry’s diverse offerings. At its core, tech firms champion transformative solutions, amplifying convenience and productivity. Financial stability, though, remains a concern for some, which is where tech dividend stocks come into play.

Oracle (ORCL)

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Oracle (NYSE:ORCL) continues to make waves this year, with its stock surging a remarkable 23.5% year-to-date. The tech titan’s prowess in cloud computing solutions, particularly in artificial intelligence (AI), is undeniable. Moreover, its Oracle Cloud Infrastructure (OCI) boasts the industry’s lowest ownership cost, leading many companies to lean on Oracle for crafting and refining AI models. Moreover, a hearty 29% spike in organic cloud sales, driven by stalwarts including OCI Gen 2 and back-office apps, speaks volumes of the company’s market traction.

While a revenue shortfall of $20 million in its most recent quarter, analysts were quick to pinpoint the culprits in diminishing licenses and hardware revenue. Additionally, Oracle’s consistent cloud growth and bettering margin landscape reinforces optimism for its fiscal year 2026 goals. Given the infancy of the AI boom, Oracle’s horizon appears vast and luminous. It yields a remarkable 1.6%, with the management primed to build on their 9-year dividend growth legacy. Factor in the bullish stance from TipRanks analysts and a potential 29% stock uptick, and Oracle holds a promising trajectory.

Texas Instruments (TXN)

Texas Instruments logo on its world headquarters located in Dallas, Texas.
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Texas Instruments (NASDAQ:TXN), boasting EBITDA margins soaring above the 49% mark, is a semiconductor giant that’s hard to overlook. Proficiently sailing through the ongoing analog chip slump, TXN remains incredibly resilient and an emblem of innovation. As automation gains momentum, Texas Instruments’ integrated circuits, critical cogs in modern systems, will continue to shine brighter.

While many analysts may get entangled in the short-term narrative, Texas Instruments’s gaze is firmly on the horizon. By laying the foundation for wafer fabrication facilities in Texas and Utah, the company is efficiently laying its blueprint for future dominance. Although its third quarter figures wavered due to industry headwinds, its current valuation is tantalizing for long-term investors. Couple this with a 17-year streak of swelling dividends and a juicy 3.67% yield, and TXN stock’s allure is undeniable. With an eye on domestic manufacturing expansion, courtesy of the U.S. Chips Act, and a firm dedication to long-run growth, Texas Instruments emerges as a compelling investment narrative.

American Tower (AMT)

A magnifying glass zooms in on the American Tower (AMT) website.
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American Tower (NYSE:AMT) is a unique tech stock specializing as a data center real-estate-investment-trust (REIT). Managing U.S. data centers and an impressive portfolio of more than 226,000 communication sites in 25 countries. Distinctively, while American Tower retains ownership of these tower structures, the tenants maintain their antenna gear, base station, and HVAC. This dual ownership effectively ensures consistent revenue through non-cancellable leases that span five to ten years, which positions at an advantageous position amid the surging demand from 4G, LTE and 5G transitions.

The third quarter of 2023 brought good tidings for American Tower, which outpaced expectations on the top and bottom lines. Consequently, it lifted its 2023 adjusted funds from operations (AFFO) per share guidance to a range of $9.72 to $9.85, slightly edging over the average analyst projection of $9.75. This new forecast points to a 0.3% year-on-year growth at its midpoint. Not stopping there, the company also nudged its full-year adjusted EBITDA forecast, hinting at a commendable 5.2% annual bump. Additionally, AMT offers an enticing 3.7% dividend yield with 10 years of payout growth.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-dividend-paying-tech-stocks-to-boost-your-portfolio-in-november/.

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