7 of the best tech dividend stocks to buy

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These tech stocks have returns of at least 2% and outperformed in 2021. As the big rebound from the pandemic era…

These tech stocks have returns of at least 2% and outperformed in 2021.

While the big rebound from the lows of last year’s pandemic era seemed almost unstoppable in 2020, it now looks like the stock market may be in trouble as the fourth quarter dawns. From recent anemic jobs figures to inflationary concerns and growing discussions about shutting down the government, it’s no surprise that the S&P 500 is down from its all-time highs in September. But the long-term outperformance of tech stocks, coupled with the fact that many of these top names also offer above-average dividends, should provide some stability for investors who don’t mind short-term volatility. Here are seven tech dividend stocks to buy with returns of 2% or better right now.

ASE Technology Holding Co. Ltd. (ASX)

About $ 19 billion Taiwan-based semiconductor inventory, ASE Technology is primarily engaged in “conditioning and testing” services rather than designing its own proprietary chips. It is true that the margins for this type of business are lower, but there is also a high degree of certainty as other semiconductor companies outsource their services to ASE. Granted, the company has had a rough time after wiping out its dividend in 2019 and suffering pandemic-related supply disruptions in 2020. But stocks have risen more than 40% since the start of the year to eclipse their highs of 2015 after the recent restoration of its dividend and on hopes of continued success in 2022.

Term dividend yield: 3.5%

Cisco Systems Inc. (CSCO)

One of the first old-guard tech stocks companies to start paying substantial dividends to shareholders, Cisco has been paying a dividend since 2011 and that quarterly payout has increased from 6 cents to 37 cents per share now, an increase of more than of six. in 10 years, despite a global pandemic and major disruptions in enterprise technology over the past decade. And lest you think Cisco is too run down to be profitable, CSCO stock has jumped over 40% in the past year to outperform the S&P 500 and provide regular income for shareholders.

Dividend yield: 2.7%

Hewlett Packard Enterprise Co. (HPE)

Most investors probably recognize the Hewlett Packard brand among the laptops or inkjet printers of yesteryear. However, after a restructuring in 2014, HP Inc. (HPQ) took over this line of consumer products and left while HPE remained as a stock of enterprise data infrastructure and technology services. It is this second company that dividend investors should be looking at, because this side of the company is not worried about trends in consumer spending or the death of printers and copiers in the digital age. Instead, he signs long-term service contracts with companies – and while business isn’t necessarily booming, profits and sales are expected to grow both this year and in the year. 2022. Additionally, with projected earnings per share of nearly $ 2 next year but dividends of just 48 cents per year, there is ample room for improvement even if those optimistic targets fall a little short.

Dividend yield: 3.7%

McAfee Corp. (MCFE)

Perhaps one of the most generous tech dividend-paying stocks in recent times, online security firm McAfee declared a special dividend of $ 4.50 in August, a huge paycheck on top of its continued quarterly distribution of 11. , 5 cents. And by the way, that dividend is up from 8.7 cents at the end of 2020. Granted, the company doesn’t have much of a history after a recent split from chipmaker Intel Corp. (INTC). And since the special dividend was a one-time bounty, stocks have retreated a bit now that payment is in sight. But stocks are still up over 50% year-to-date to make MCFE one of the top performing tech stocks of all walks of life, and its annualized dividend is still over 2% even if you ignore the August salary.

Dividend yield: 2.1%

NetApp Inc. (NTAP)

With a boost in July that now gives NetApp a quarterly dividend of 50 cents, this tech stock has seen an impressive growth rate of around 163% in its payouts compared to just 19 cents at the start of 2017. Part of it NTAP’s recent success is certainly due to the disruptions linked to the pandemic which have had an impact on its activities. After all, this company is a major player in cloud services for managing and sharing on-premises data, including remote desktop access as well as backup and compliance services. But with projected earnings growth of 23% this fiscal year, things are hardly slowing down – and this generous dividend is more than sustainable for years to come.

Dividend yield: 2.2%

Seagate Technology Holdings PLC (STX)

Seagate has long been on the radar of dividend-paying investors, despite admittedly being involved in a rather old-school corner of the tech industry – hard drives used in servers and laptops etc. for local data storage. While the vast majority of businesses and even many consumers have migrated to cloud-based data solutions, the fact remains that hardware is still relevant in 2021. And for proof, just consider that STX’s revenue has grown slightly in each of the past two years despite pandemic challenges and supply chain disruptions. Profits are also advancing, comfortably supporting a higher dividend than most stocks in the S&P 500 – tech companies or otherwise.

Dividend yield: 3.2%

United Microelectronics Corp. (UMC)

UMC is an approximately $ 29 billion Taiwan-based microchip maker that has recently been able to earn premium prices for its services, thanks to continued supply chain disruptions and the global chip shortage. ensuing. In a nutshell, United Microelectronics is a vital stopgap for many companies as they see larger orders to create high-tech components as quickly as possible in an environment of growing demand. Recent expensive investments to improve its production capacity have paid off, but haven’t stopped a generous payout on top of its impressive 170% cycle over the past 12 months.

Dividend yield: 2.4%

Seven of the best dividend-paying tech stocks to buy:

– ASE Technology Holding Co. Ltd. (ASX)

– Cisco Systems Inc. (CSCO)

– Hewlett Packard Enterprise Co. (HPE)

– McAfee Corp. (MCFE)

– NetApp Inc. (NTAP)

– Seagate Technology Holdings PLC (STX)

– United Microelectronics Corp. (UMC)

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7 of the best tech dividend stocks to buy originally appeared on usnews.com


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