The allure of tech stocks among investors has been akin to a siren’s call, beckoning with the promise of extraordinary returns. In the past year, these stocks have witnessed a resurgence, as renewed optimism fuels their ascent.
Despite this, investors also cherish dividends for their ability to act as a cushion against market downturns and as a reliable source of passive income.
Unveiling the Dividend-Paying Trio
Delving into the domain of dividend-paying tech stocks, we encounter three notable players: Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS), each offering quarterly distributions to their shareholders.
Vipshop
Vipshop, presently holding a Zacks Rank of #1 (Strong Buy), operates as an online discount retailer for prominent brands. Impressively, its earnings estimate revisions have surged by 46% in the current fiscal year, projecting a 7% year-over-year growth.
With an annual yield of 2.4%, Vipshop outperforms the Zacks Computer & Technology sector’s average. Moreover, the company has consistently outperformed earnings expectations, with the last four quarterly releases surpassing the Zacks Consensus EPS estimate by an average of 21%.
Dell Technologies
Dell Technologies, with a Zacks Rank of #2 (Buy), specializes in providing information technology solutions. Offering an annual yield of 1.7%, the company maintains a sustainable payout ratio of 26% of its earnings.
Analysts share an optimistic outlook for Dell, with a 25% increase in the Zacks Consensus EPS over the past year, forecasting an 8% year-over-year growth.
Garmin
Garmin, a Zacks Rank #2 (Buy), is known for its GPS-based navigation and communication equipment manufacturing. Boasting a 2.1% annual yield, the company’s 52% payout ratio stands on solid ground.
Garmin also notches a 6.7% five-year annualized dividend growth rate, emphasizing its commitment to rewarding shareholders.
The Attraction of Tech Dividends
Contrary to popular belief, dividend-paying stocks can exude excitement, especially when they hail from the tech sector. Companies like Dell Technologies, Garmin, and Vipshop blend the allure of technology with the stability of quarterly payouts.
Furthermore, all three stocks exhibit a favorable Zacks Rank, underscoring the positive sentiments echoed by analysts.
