Welcome to Episode #84 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Neena Mishra, Director of ETF Research, and also editor of the Income Investor portfolio, which buys stocks that pay dividends, to discuss the technology stocks that are paying dividends.
Back in the 1990s, such a thing barely existed as technology growth companies didn’t want to be seen as an “old” company that paid dividends.
But that changed in the 2000s as cash hoards grew and pressure mounted from shareholders to share the wealth.
In 2003, Microsoft became the first of the newer tech titans to pay a dividend and it opened up the floodgates for others. Apple (AAPL) finally began paying one in 2012.
Which of the tech stocks give you the best bang for your buck with dividends?
5 Top Tech Stocks That Pay Dividends
1. In 2003, Microsoft MSFT paid just $870 million in dividends. For fiscal 2016, it was $16 billion yet the company still has $126 billion cash on hand as of last quarter. It pays a yield of 2.3%.
2. Western Digital WDC generated $1 billion in free cash flow last quarter and has $5.8 billion in cash on hand. The data storage company pays a yield of 2.2%.
3. Broadcom AVGO has paid a dividend since 2010. It hasn’t yet reported (it reports earnings this week) but is currently paying 1.7%.
4. J2 Global JCOM is a small cap digital media and cloud services company in Los Angeles. It has raised its dividend 23 consecutive quarters. Impressive. It has a yield of 1.8%.
5. TiVo TIVO recently combined with Rovi which gave them a strong patent business. About 50% of its revenue comes from licensing due to the patents. It has the juiciest dividend of all, yielding 4.4%.
All of these technology companies also have strong earnings and sales growth so the dividend is just icing on the cake.
Tracey and Neena also discuss an ETF that invests in technology stocks that pay dividends, the First Trust Tech Dividend Index Fund TDIV.
Should you invest in a bucket of tech stocks instead?
Get the answer to this and all your questions about technology stocks and dividends on this week’s podcast.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Western Digital Corporation (WDC): Free Stock Analysis Report
j2 Global, Inc. (JCOM): Free Stock Analysis Report
TiVo Corporation (TIVO): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
May 31, 2017 at 05:18AM
from Tracey Ryniec
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