5 of the Best Tech Dividend Stocks to Buy
While it is difficult to determine which tech dividend stocks are best, some companies have a proven track record of high dividend yields. Cisco systems, Apple inc., and Ase technology holding have outperformed their peers in the past year. This past year, however, tech stocks with yields over 2% outperformed their peers. And if you're wondering why these tech stocks are so highly rated, you should keep reading to learn more.
Ase technology holding
ASE Technology Holding is a Taiwan-based semiconductor company that has seen impressive growth over the past five years. The company does not design chips itself, but rather provides testing and packaging services to the semiconductor industry. This has allowed the company to enjoy a high degree of certainty despite its relatively small margins. Moreover, the company is expected to grow its automotive business by 60 percent next year. In addition, ASE Technology has improved its operating margin, which was previously 7.3%.
ASE Technology Holding has three reportable segments: semiconductor manufacturing, testing services, and telecommunications equipment motherboards. The company has a low price-earnings ratio, which means it is undervalued relative to its peers. The stock's PB Ratio is only 1.7x, so its yield is below average. However, investors should consider that the company has a high level of financial stability, which could make it an attractive option for dividend investors.
If you're looking for an affordable tech dividend stock, consider Cisco systems. The company's P/E ratio is under 15 and it trades for less than fifteen times forward earnings. Not only does Cisco's dividend pay a nice, steady income, but it also has a margin of safety. Here's why Cisco systems is one of the best tech dividend stocks. EPS growth is higher than average and its business model is changing to focus on software and services.
The company primarily sells hardware and software, but it's also expanding into new areas. Traditionally, Cisco has focused on hardware, which has a lower margin than software. Today, more than half of Cisco's revenue comes from software subscriptions. And even more interesting is that Cisco's software revenues have increased substantially in recent years. Cisco has become a software giant thanks to acquisitions and investments in emerging technologies.
Despite the current market turmoil, investors should consider Apple Inc. as one of the best tech dividend stocks to buy. With a loyal customer base and a pricing power few companies can match, Apple continues to attract investors. And Apple's growing dividend payment makes it a great investment for those seeking both capital appreciation and an attractive growth potential. In fact, Zacks Investment Research recently released a list of the 10 best tech dividend stocks to buy.
Despite the low dividend yield, Apple has plenty of room to grow its payout. With $85 billion in cash on its balance sheet at the end of December, Apple has plenty of room to increase its dividend. Over the next decade, Apple is likely to double its quarterly payout, and an investor purchasing today could enjoy a 1% dividend yield by 2032. However, the Apple dividend is not a great investment for beginners.
When it comes to high dividend yield stocks, Microsoft isn't on the list. But the multinational technology company is a great buy, mainly because of its solid dividend history and recurring revenue. With a modest dividend, it rewards patient investors with a solid growth story. And it's not just the dividend that makes Microsoft attractive; its company fundamentals are one of the best in the business. Let's take a closer look at why it's one of the best tech dividend stocks.
Aside from the dividend, Microsoft has a strong business model and is expected to grow at a rapid pace. The company generates huge profits and rewards shareholders with aggressive growth rates. Despite its low dividend yield, MSFT stock is still trading near all-time highs and offers an excellent value for dividend investors. Its aggressive growth rate, high dividend payout, and ample share repurchases make it a solid dividend stock.
Hewlett-Packard (HPE) is one of the best tech dividend stocks to buy today. Founded in 1935, HPE is an enterprise IT solutions provider. The company manufactures and markets computers, printers, displays, and more. HPE also offers services to businesses and institutions worldwide. Its latest acquisition was Teradici, which specializes in remote computing. In addition, HPE has an impressive dividend yield of 3.1% and is currently flat for the year.
HP is an excellent value stock to own today, with a forward P/E of 56% below the industry average. Additionally, its PEG ratio is nearly 80% below its peers' valuations. HP stock has also seen great growth in recent years, and trades for less than $40 per share. While HP isn't booming right now, it is growing quickly and has strong earnings.