3 Tech Stocks for Dividend Investors to Buy Now

Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear 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. 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 #1 (Strong 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 yield of 4.3%, making it one of the most attractive income options in the entire technology sector.

 

2. Garmin Ltd. (GRMN)

Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (Buy) and presents a dividend yield of about 3.5%. Investors have to pay a slight premium for GRMN right now, but a valuation of 19.5x forward 12-month earnings and a PEG ratio of 2.3 are certainly not outrageous. Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 18.6%, which dramatically outpaces its industry’s average of 1.7%. Garmin is also an efficient company, evidenced by its RoE of 15.7%.

 

3. Texas Instruments, Inc. (TXN)

Although you might recognize the brand because of its calculators, Texas Instruments is actually one of the leading suppliers of advanced semiconductors in the world. TXN is currently sporting a Zacks Rank #1 (Strong Buy). It should be a solid year of growth for the firm, with current estimates calling for earnings to expand by 28% in 2018. The company is also witnessing cash flow growth of 19.5% right now. Texas Instruments is really a cash cow, bringing in a total of $5.34 in cash per share. Management uses its solid financial position to reward shareholders with a dividend yield of roughly 2.2% currently.

 

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Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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Seagate Technology PLC (STX) : Free Stock Analysis Report
 
Garmin Ltd. (GRMN) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
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