The tech sector exudes its charm with the lure of artificial intelligence (AI), drawing investors to its promising returns. While the appeal of tech stocks remains strong, dividends offer a stable shelter in a turbulent market, offering a passive income flow and a shield against harsh downturns.
Among the tech giants that gracefully balance growth with dividends are Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP), offering investors the best of both worlds.
A Beacon of Strength: Vertiv Soars 100% YTD
Vertiv’s shares have radiated strength throughout 2024, propelled by stellar quarterly results spurred by the AI wave, outshining the S&P 500 with a remarkable 100% surge. The company’s optimistic revenue forecast has surged by 64% in the past year.
Image Source: Zacks Investment Research
Despite a modest annual yield of 0.1%, Vertiv stands as a prime income-generating choice for investors seeking a slice of the AI pie, particularly in the data center realm.
NetApp Elevates Expectations Quarter After Quarter
NetApp has showcased impressive resilience this year, marking a nearly 40% hike in its shares, fueled by exceptional quarterly results that consistently outshine expectations. With an average 8% beat on earnings per share (EPS) in the last four releases, NTAP shares carry an attractive 1.6% annual yield, exceeding the Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
Roper Technologies: A Beacon of Consistent Growth
While ROP shares experienced a more tempered growth YTD, a recent uptick has seen a 6% climb, outshining the S&P 500’s mere 2% gain. The company’s track record is commendable, surpassing earnings and revenue expectations for seven consecutive quarters.
With robust sales growth and an annual yield of 0.5%, Roper Technologies may not boast the highest dividends, but its steadfast commitment to increasing shareholder rewards is evident in its impressive 10.2% annualized dividend growth over five years.
Image Source: Zacks Investment Research
Wrapping Up
Amidst the hustle and bustle of the tech world, dividend-paying stocks like Vertiv, NetApp, and Roper Technologies stand out as shining examples of income-generating tech investments. For investors seeking the perfect blend of tech exposure and steady dividends, these three companies present an enticing opportunity. Moreover, all three companies boast a favorable Zacks Rank, reflecting analyst confidence in their potential.
