Dividend tech stocks offer a growing income stream
While investors favor technology stocks for their growth, they can also be a reliable source of dividend income. Dividend tech stocks offer investors above-market earnings growth and a reliable income stream.
As we head into 2024, technology has emerged as one of the most resilient sectors. Secular growth trends such as the digitization of the economy, artificial intelligence and electric vehicles are supporting growth in these companies. Another advantage is that most of these companies are largely unaffected by higher yields. Since they are profitable and generate tremendous free cash flows, they don’t rely on the debt market for financing.
Adding some dividend tech stocks here is recommended, given the positive outlook and the likelihood of earning growth in 2024. The Finviz stock screener reveals technology stocks with a dividend yield greater than 1% and a payout ratio below 50%. Typically, a low payout ratio creates an opportunity for dividend growth.
Then, since investors want an increasing income stream, these selected stocks show at least five years of dividend growth.
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