Tech Stocks’ Flair for Gains
The tech sector has long captivated investors with its remarkable returns, surging back into favor over the last year amid renewed optimism propelling market dynamics. It has also gained increased traction amongst investors seeking dividends to hedge against downturns and secure a stream of passive income.
The Trio of Dividend Yielding Tech Stocks
Three standout tech stocks – Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) – offer investors the dual advantage of capital appreciation and regular dividends. Let’s delve into each company’s dividend profile.
Vipshop: A Discount Retailer with a Strong Yield
Vipshop, holding a top Zacks Rank of #1 (Strong Buy), operates as an online discount retailer. Positive earnings estimate revisions, indicating a robust estimate trend for the current fiscal year with a 46% uptick over the past year, hint at a 7% year-over-year growth. The company boasts an attractive 2.4% annual yield, well surpassing the industry average. Noteworthy are the consistently impressive quarterly results, consistently outperforming the Zacks Consensus EPS estimate by an average of 21% in the last four releases.
Dell Technologies: IT Solutions Provider with a Balanced Payout
Earning a Zacks Rank of #2 (Buy), Dell Technologies offers information technology solutions and a 1.7% annual yield with a sustainable payout ratio of 26%. Analyses have been bullish on the company’s outlook for the current year, with a 25% increase to $7.64 in the Zacks Consensus EPS compared to the previous year, suggesting an almost 8% year-over-year growth.
Garmin: Pioneering Navigation Technology Provider
Garmin, also holding a Zacks Rank of #2 (Buy), is an original equipment manufacturer specializing in GPS-based technology for navigation and communication. With an annual 2.1% yield and a moderate 52% payout ratio, Garmin has demonstrated dividend growth with a 6.7% five-year annualized rate.
A New Tech Narrative: Dividends & Growth
Contrary to popular belief, dividend-paying tech stocks can be thrilling investments with enticing rewards. The trio – Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) – not only offer quarterly payouts but also stand out with favorable Zacks Ranks reflecting optimistic analyst sentiments.