Investors seeking out both growth and enticing yields may want to consider these seven tech stocks with dividends.
Finding tech stocks with dividends isn't the easiest task
for investors. Most don't issue cash payouts to shareholders, but the few that
do become even more enticing during periods of market volatility due to their
ability to offer a unique combination of growth and income.
Looking specifically at the S&P 500 Index, there are
only 44 out of 75 tech stocks with dividends, and the yields on most of these
are meager. According to Todd Rosenbluth, head of research at VettaFi, the
average yield on tech stocks in the S&P 500 Index was less than 0.8% last
year and lagged far behind much richer yields available from sectors like
consumer staples (2.4%) and utilities (2.9%).
Another interesting fact about tech stocks with dividends is
that most found in the S&P 500 are relatively new to paying shareholders
and virtually all either initiated dividend payments in 2021 or raised their
payouts. Companies new to paying dividends often make bigger or more frequent
hikes early on, so dividend-paying tech stocks could be a good place to look for
above-average growth.
At present, most dividend-paying tech stocks offer yields
below 2%, but there are a few tech standouts yielding nearly 3% or even higher.
Here are seven tech stocks with dividends that offer a rare combination of
earnings growth, rising free cash flows and generous above-average yields.
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