Tech stocks have been unpredictable at times recently, but the sector has proven it can rebound from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear run up to this point.
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.
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:
1. Garmin Ltd. (GRMN – Free Report)
Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (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 19x forward earnings and a PEG ratio of 2.5 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 19.5%, which dramatically outpaces its industry’s average. Garmin is also an efficient company, evidenced by its RoE of 17%.
2. Qualcomm Incorporated (QCOM – Free Report)
Qualcomm is one of the world’s largest telecommunications equipment and semiconductor manufacturing companies in the world. QCOM currently sports a Zacks Rank #1 (Strong Buy) and has a dividend yield of 4.5%. Management has a great track record of adding to the payout and has hiked the dividend annually since 2009.
