As a new investor, you’re excited about the possibility of investing in the exciting world of technology stocks. You’ve heard that it’s making investors a lot of money because the world is always welcoming (and needing) new technology in order to progress. Companies in this industry have strong growth rate prospects and are set to skyrocket in the future.
Along with making money on your investments through this growth, you know you can also get free cash flow through something called dividends. Let’s take a look at what dividend stocks are, as well as what tech stocks with dividends have a healthy dividend payout for investors.
What Are Dividends?
Dividends are shares of a company’s profits that are given out to shareholders and paid on a monthly or quarterly basis, though the latter is much more common. You are not only making a profit if your stock goes up but, in simplest terms, you’re getting a bonus in the form of dividend payments, which means your total return could be higher. For instance, if a company you’ve bought 100 shares in pays out a dividend of 20 cents per share, you would receive $20 in cash on the quarterly or monthly basis. Most dividend stocks that payout in the U. S. is cash dividends. Dividend payments are not guaranteed; they are left in the hands of the board of directors, who decide whether or not to give them out. Some investors rely on this cash flow from dividends as forms of income, but that’s not always wise, in case the board of directors decides to cease dividend payments.
Now that you know about dividend stocks, here are some dividend-paying tech stocks that you should consider investing in.
1. Texas Instruments
Texas Instruments (NASDAQ: TXN) is the third-largest manufacturer of semiconductors on the planet. They are also the second-largest supplier of cellular handset chips. While they also produce educational technology like calculators, the semiconductor side of their company makes up 96% of their revenues. The company began making dividend payments in 1962, and it has made dividend payments consistently since then.
They pay out $3.08 per common share annually in dividends to their stockholders. Over the last five years, the company has increased the dividend payments at a compounded annual earnings growth rate of 21 percent. The stock is currently worth over $116 per share, and it’s only been going up over the last five years. This is one of the best tech stocks with dividends because they have always made dividend payments on time and they have a bright future ahead. When you invest in Texas Instruments, you can rely on your quarterly payment every time.
Computer hardware company IBM (NYSE: IBM) is a global technology company that operates in more than 170 countries. IBM’s stock is worth over $145 per share, and IBM provides one of the highest dividend yields of any other tech dividend stock, at 4.45%. In 2018, IBM was on number 20 on the list of Forbes’ most valuable brands in the world, and it was valued at $32.1 billion. The company has been predicting an earnings growth in 2019 due to its fast-growing Technology Services and Cloud Platforms part of its business, which could mean a dividend increase for investors. At the beginning of 2019, its stock was up about 20%, making it one of the top tech stocks with dividends that you should be looking into.
Consumer electronics giant Apple (NASDAQ: AAPL), which is huge in the smartphone business especially, is another one of the tech stocks with dividends that you should be looking into. Their current stock price is $199.25 per share, and over the past five years, it’s been on the up and up. As of the beginning of 2019, their current quarterly dividend per share was $0.73, and their current yield was 2%. They’ve gone seven years with dividend increases, which cements their reputation as one of the best tech stocks that pays dividends.
4. Cisco Systems, Inc.
Cisco Systems, Inc. (NASDAQ: CSCO) is a global technology conglomerate that develops, sells, and manufactures telecommunications equipment, networking hardware, and other high tech products and services. Its current stock price is just under $57 per share, making it one of the top tech stocks that pay dividends.
Cisco raised its dividends by 6% in February of 2019. They declared a $0.35/share quarterly dividend when they made the announcement. Analysts believe that Cisco’s earnings per share will go up nearly 18.1% in 2019 and then get another 9.7% increase in 2020. If you invest in Cisco’s dividend stocks now, you can expect a healthy dividend payout in the future.
Learn More About Tech Stocks with Dividends with Nova-X Report
Now you’re certain that you want to invest in technology stocks with dividends because you see it as a way to have some extra cash flow on the side while a stock price keeps climbing. Dividend stocks are a nice bonus that you would gladly welcome.
One of the ways you can find out about more tech stocks with dividends – as well as up and coming tech stocks that will pay out big in the future – is to subscribe to Nova-X Report. Michael Robinson, a Silicon Valley veteran who was in early talks about the cloud industry, knows which technology stocks are going to be huge in the future. Michael Robinson can tell you which stocks are going to make you the most money and help you be financially secure, as well as build your wealth. If you’re ready to educate yourself and be part of the thrilling tech revolution, then subscribe to Nova-X Report today.