Here're seven robust dividend stocks from the tech space
Seasoned investors realize dividend investing is a
time-tested strategy that might be appropriate for most buy-and-hold retail
portfolios. They are not interested in
timing highly volatile momentum. Instead their investment strategy is, at least
in part, to buy shares in high quality dividend-paying companies and then
reinvest those dividends over a long period of time, such as until retirement
years. Then they begin collecting this passive income stream. Today’s article,
therefore, introduces seven of the best tech dividend stocks.
When companies are profitable, they make a decision as to
whether to distribute the profits as dividends or keep as retained earnings.
Management usually never wants to decrease or axe the dividend. Such a cut
would potentially signal financial stress, reducing confidence in the firms.
Most investors regard dividend distribution as a positive signal regarding
future income (or cash flows).
Shares of dividend-paying businesses tend to keep their most
of their value even in market declines. Investors, especially those who rely on
that passive income, often never sell their shares. After all, regardless of
any short-term volatility in the stock market that might affect share prices,
the dividend is a definite return on investment.
In investing, the aim is achieving an acceptable total
return that is consistent with an investor’s objectives. Tech stocks are mostly
regarded as growth shares. In other words, individuals may not necessarily
associate them with dividends. However, there are a number of tech darlings of
Wall Street that also pay dividends. They tend to be more mature technology
businesses with predictable revenues and cash flows. Thus they might be
offering investors the best of both worlds with potential share price growth as
well as passive income.
Recent research led by Greg Filbeck of the Black School of
Business at Penn State Behrend in Erie, PA highlights, “Dividend-yield
strategies generate investor interest because they have historically offered
better risk-adjusted performance.” Put another way, the case for investing in
dividend-paying companies remains strong, and over time, buy-and-hold investors
are likely to be well rewarded.
Most investors like to include technology shares in their
portfolios. With that information, here are seven tech dividend stocks for
long-term portfolios:
Comments
Post a Comment