Tech stocks have long been the stars of the investment world, riding high on the wave of the artificial intelligence (AI) frenzy. The sector’s growth has captivated many investors, who have relished in the substantial gains.
Moreover, besides the allure of tech stocks, dividends have their own charm. They can act as a shield against market downturns and provide a steady stream of passive income. Companies that pay dividends are generally well-established, capable of sharing profits with their shareholders without compromising financial stability.
For those looking to combine tech exposure with income generation, certain tech stocks like Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) offer regular quarterly payouts.
Vertiv: Booming Performance
Vertiv’s shares have surged dramatically in 2024, driven by strong quarterly results fueled by the AI craze. The stock has soared over 100%, significantly outperforming the S&P 500. Analysts are bullish, with a revision trend showing a 64% increase over the past year.
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With an annual yield of 0.1%, Vertiv remains an attractive option for income-focused investors seeking exposure to AI, especially in the data center segment.
NetApp: Exceeding Expectations
NetApp’s shares have also performed strongly, registering nearly a 40% increase year-to-date, bolstered by impressive quarterly results. The company has consistently outperformed expectations, beating consensus EPS estimates by an average of 8% in its last four releases.
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NetApp currently offers an annual yield of 1.6%, surpassing the average for its sector. The company has also increased its dividend payout three times in the last five years.
Roper Technologies: Steady Dividend Growth
Roper Technologies’ shares may not have had the same YTD success as others, but a recent upswing of 6% in the past month has put them back in the spotlight, outpacing the S&P 500’s 2% rise. The company’s consistency in surpassing earnings and revenue forecasts over seven consecutive quarters is noteworthy.
Roper has shown robust sales growth, posting double-digit year-over-year growth rates in each of the last six reporting periods. While the current annual yield stands at 0.5%, the company’s five-year annualized dividend growth rate of 10.2% underscores its commitment to rewarding shareholders.
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Seeking Income and Tech Exposure? Look Here!
Dividend-paying stocks aren’t limited to ‘boring’ sectors; many tech companies are generous with their shareholders through regular payouts.
For those interested in a blend of tech exposure and income generation, the trio of Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) present compelling options. Furthermore, all three currently hold favorable Zacks Rank, signaling optimism among analysts.