It has been no secret that the technology sector has been at the forefront of the market’s strong bull run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out three of these stocks to buy now:
1. Cisco Systems, Inc. (CSCO)
Cisco is a worldwide leader in the information technology industry. The company develops and sells networking hardware, telecommunications equipment, and other high-technology services and products. Cisco is currently sporting a Zacks Rank #2 (Buy) and just reported better-than-expected earnings and revenues last week. Management also provided positive top-line guidance for the current quarter. Cisco is using its current strength to reward investors and currently provides a dividend yield of about 2.63%.
2. Seagate Technology PLC (STX)
Seagate is a global leader in hard drive manufacturing. It offers a range of disk drive products for the enterprise, client computing, and client non-computing market applications. Seagate is currently sporting a Zacks Rank #2 (Buy) and an “A” grade for Value in our Style Scores system. The firm is currently generating a staggering $6.78 in cash per share on the back of 32% cash flow growth. Seagate takes advantage of its strong cash position by offering investors a dividend of 4.84%, making it one of the most attractive income options in the entire technology sector.
3. Canon, Inc. (CAJ)
Canon is an industry leader in professional and consumer imaging equipment and information systems. The stock is currently holding a Zacks Rank #1 (Strong Buy), as well as an “A” grade for Growth and a “B” grade for Value. Canon is generating cash flow growth of nearly 30% and sports an impressive RoE of 9%. Meanwhile, the company brings in about $4.28 in cash per share and sports a Debt/Equity ratio of just 0.16. Canon also recently crushed our Zacks Consensus Estimate for earnings by more than 12%. The imaging equipment offers a 3.75% dividend yield right now.
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