Tech stocks have surged in popularity among investors, offering remarkable returns. After a period of oscillation, they have made a roaring comeback in recent times, fueled by renewed investor confidence.
Investors not only cherish tech stocks but also have a soft spot for dividends. Dividends serve as a cushion against losses in other investments and offer a steady stream of passive income.
Delving into Dividend-Paying Tech Stocks
Surprisingly, some tech companies such as Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) regularly reward their shareholders with quarterly dividends.
Vipshop – A Retailer’s Delight
Vipshop, currently rated as a Zacks Rank #1 (Strong Buy), operates as an online discount retailer. Its earnings estimates for the current fiscal year have seen a robust uptrend, rising by 46% in the past year, indicating an expected 7% year-over-year growth.
Vipshop’s current annual dividend yield stands at a commendable 2.4%, surpassing the sector’s average. The company has consistently outperformed earnings expectations in recent quarters, beating the Zacks Consensus EPS estimate by an average of 21% over the last four releases.
Dell Technologies – Innovating Dividend Payouts
Dell Technologies, holding a Zacks Rank #2 (Buy) designation, specializes in providing information technology solutions. With an annual yield of 1.7%, the company maintains a sustainable payout ratio of 26% of its earnings.
Similar to Vipshop, analysts have expressed optimism about Dell Technologies, with the Zacks Consensus EPS for the year showing a 25% increase in the last year and hinting at an almost 8% year-over-year growth.
Garmin – Charting a Course for Dividend Growth
Garmin, also a Zacks Rank #2 (Buy), is an original equipment manufacturer of navigation and communication tools using GPS technology. The company boasts a solid 2.1% annual yield, with a sustainable 52% payout ratio.
Notably, Garmin has displayed consistent dividend growth, with a respectable 6.7% five-year annualized rate.
The Dividend-Paying Verdict
Contrary to popular belief, dividend-paying stocks need not be dull, with many compelling tech companies rewarding their investors with dividends.
For those seeking exposure to the tech sector while enjoying quarterly payouts, Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) not only fit the bill but also carry a favorable Zacks Rank, reflecting positive analyst sentiments.