10 Technology Stocks that Pay Dividends
In this article, we will be looking at 10 technology stocks that pay dividends. To skip our detailed analysis of the technology sector and these stocks, you can go directly to see the 5 Technology Stocks that Pay Dividends.
The year 2020 can hardly be considered to be anything like a normal year. From rising climate change concerns and horrendous environmental disasters to the outbreak of the coronavirus pandemic and the beginning of yet another economic recession in world history; 2020 saw it all. With such developments, it is no surprise that the global economy and the stock market took major hits, with stocks on Wall Street having fallen by about 2% in mid-June 2021, oil prices falling by over 6% during the same time, and the US treasury bond yields decreasing to five-month lows by falling 12.2 basis points to roughly 1.2%, according to Reuters. In the midst of all this, however, the technology sector and technology stocks like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC) among others have managed to weather the storm and retain investor confidence.
For instance, CNBC has reported that despite the 900-point Dow Jones Industrial Average dropping this July, investors with $1 million or more in brokerage accounts have been reported to be bullish on the market at large and particularly on technology stocks. This claim was extrapolated from a survey conducted with wealthy stock traders as respondents. It has also revealed that these investors prove to be more bullish come the third quarter of 2021, and were increasingly confident in the US economy's strength and growth providing them with the opportunity to bring in more profits through the technology sector.
Investors with millions of dollars at their disposal began joining the bull market, with their numbers rising by about 7% quarter over quarter from 58% to 65% according to the Morgan Stanley-led survey. And about 46% of these millionaire investors have forecasted a maximum gain from technology stocks of about 5%. With this survey conducted by Morgan Stanley's E-Trade Financial, taking in the opinions of about 898 self-directed investors and compiling the results from about 157 investors each with $1 million or more in the form of investable assets, the outlook for investor sentiment on the technology sector continues to look overwhelmingly optimistic.
As for the industry on its own, a Deloitte report on 2021 Outlook for the US Technology Sector has mentioned that the tech sector is headed for continued growth and recovery in 2021. While the sector will have to take into account three main issues, referred to by the report as redoubling efforts for digital transformation, reorienting and reskilling the workforce in the sector, and reexamining the methods and locations of technology manufacturing, it can be expected to live up to investor expectations. For instance, the report has mentioned that revenue from global public cloud service alone can be expected to hit the $308.5 billion mark in 2021, and as much as $354.6 billion in 2022. As demand for technology products and services increases, and the tech sector itself goes through rapid transformations with changing trends in artificial intelligence and the growing need for cloud-driven as-a-service offerings, it is not unreasonable for more investors to be willing to bet their money on the industry.
While the technology sector continues to flourish, the entire hedge fund industry is still feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let's now look at 10 technology stocks that pay dividends.
Our Methodology
The stocks added to our list are all constituents of the Russell 2000 small-cap stock index. They are also among the more popular stocks that hedge funds are investing in today, according to Insider Monkey's tracked data of 866 hedge funds. Each stock's number of hedge fund holders and dividend yield has been mentioned below, with the stocks being ranked from the lowest to the highest dividend yield. We also took care to include stocks with mostly positive analysts' ratings and strong fundamentals.
Technology Stocks that Pay Dividends
10. ADTRAN, Inc. (NASDAQ: ADTN)
Number of Hedge Fund Holders: 10 Dividend Yield: 1.5%
ADTRAN, Inc. (NASDAQ: ADTN) is an information technology company offering networking and communications platforms and services for service providers, businesses, distributed enterprises, and others in the US, Germany, Mexico, and across the globe. The company is based in Alabama, US, and ranks 10th on our list of technology stocks that pay dividends.
This August, Paul Silverstein, an analyst at Cowen, upgraded shares of ADTRAN, Inc. (NASDAQ: ADTN) from Market Perform to Outperform. Silverstein also raised his price target on the stock from $16 to $29.
In the second quarter of 2021, ADTRAN, Inc. (NASDAQ: ADTN) had an EPS of $0.16, beating estimates by $0.04. The company’s revenue was $143.23 million, up 11.28% year over year and also beating estimates by $1.41 million. ADTRAN, Inc. (NASDAQ: ADTN) has gained 42.03% in the past 6 months and 58.52% year to date.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in ADTRAN, Inc. (NASDAQ: ADTN) worth roughly $75.3 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $79.2 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC), ADTRAN, Inc. (NASDAQ: ADTN) is a good stock to invest in.
9. Comtech Telecommunications Corp. (NASDAQ: CMTL)
Number of Hedge Fund Holders: 10 Dividend Yield: 1.5%
Comtech Telecommunications Corp. (NASDAQ: CMTL) is a developer and marketer of products, systems, and services for the provision of communications solutions in the US and internationally. The company ranks 9th on our list of technology stocks that pay dividends and operates through its Commercial Solutions and Government Solutions segments.
This June, Northland's Michael Latimore retained an Outperform rating on shares of Comtech Telecommunications Corp. (NASDAQ: CMTL) after the company's solid Q3 beat. The analyst's price target on the shares is $28.
In the fiscal third quarter of 2021, Comtech Telecommunications Corp. (NASDAQ: CMTL) had an EPS of $0.26, beating estimates by $0.24. The company’s revenue was $139.38 million, up 3.15% year over year but missing estimates by $1.17 million. Comtech Telecommunications Corp. (NASDAQ: CMTL) has gained 29.11% year to date and 46.69% in the past year.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Comtech Telecommunications Corp. (NASDAQ: CMTL) worth roughly $55.4 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $49 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC), Comtech Telecommunications Corp. (NASDAQ: CMTL) is a good stock to invest in.
8. ManTech International Corporation (NASDAQ: MANT)
Number of Hedge Fund Holders: 14 Dividend Yield: 1.7%
ManTech International Corporation (NASDAQ: MANT) is a technology solutions provider operating in the US to serve defense, intelligence community, and federal civilian agencies across the globe. It ranks 8th on our list of technology stocks that pay dividends and offers not only cyber solutions but digital modernization services as well.
Credit Suisse just this August raised its price target on shares of ManTech International Corporation (NASDAQ: MANT) from $60 to $66.
In the second quarter of 2021, ManTech International Corporation (NASDAQ: MANT) had an EPS of $0.99, beating estimates by $0.12. The company’s revenue was $648.58 million, up 5.24% year over year and beating the previous quarter's $633.22 million revenue. ManTech International Corporation (NASDAQ: MANT) has gained 11.07% in the past year.
By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in ManTech International Corporation (NASDAQ: MANT) worth roughly $35 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $15.5 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC), ManTech International Corporation (NASDAQ: MANT) is a good stock to invest in.
7. Vishay Intertechnology, Inc. (NYSE: VSH)
Number of Hedge Fund Holders: 32 Dividend Yield: 1.7%
Vishay Intertechnology, Inc. (NYSE: VSH) is a manufacturer and supplier of discrete semiconductors and passive electronic components. The company operates in Asia, Europe, and the US, and ranks 7th on our list of technology stocks that pay dividends.
This April, Loop Capital's David Williams upgraded shares of Vishay Intertechnology, Inc. (NYSE: VSH) from Hold to Buy. At the same time, the analyst also upped his price target on Vishay Intertechnology, Inc. (NYSE: VSH) from $24 to $30.
In the second quarter of 2021, Vishay Intertechnology, Inc. (NYSE: VSH) had an EPS of $0.61, beating estimates by $0.03. The company’s revenue was $819.12 million, up 40.81% year over year and also beating estimates by $1.40 million. Vishay Intertechnology, Inc. (NYSE: VSH) has gained 9.57% year to date and 30.50% in the past year.
By the end of the first quarter of 2021, 32 hedge funds out of the 866 tracked by Insider Monkey held stakes in Vishay Intertechnology, Inc. (NYSE: VSH) worth roughly $56.5 million. This is compared to 31 hedge funds in the previous quarter with a total stake value of approximately $45.6 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC), Vishay Intertechnology, Inc. (NYSE: VSH) is a good stock to invest in.
6. American Software, Inc. (NASDAQ: AMSWA)
Number of Hedge Fund Holders: 6 Dividend Yield: 2%
American Software, Inc. (NASDAQ: AMSWA) is another information technology company and is next on our list of technology stocks that pay dividends, ranking 6th. The company develops and markets computer business application software products in the US and internationally. It operates through its Supply Chain Management, Information Technology Consulting, and Other segments.
This June, Sidoti's Matthew Galinko upgraded shares of American Software, Inc. (NASDAQ: AMSWA) from Neutral to Buy. Galinko also has a $26 price target on the stock.
In the fiscal fourth quarter of 2021, American Software, Inc. (NASDAQ: AMSWA) had an EPS of $0.11, beating estimates by $0.05. The company’s revenue was $28.57 million, beating the previous quarter's revenue of $27.68 million. American Software, Inc. (NASDAQ: AMSWA) has gained 6.64% in the past 6 months and 28.65% year to date.
By the end of the first quarter of 2021, 6 hedge funds out of the 866 tracked by Insider Monkey held stakes in American Software, Inc. (NASDAQ: AMSWA) worth roughly $46.6 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $43.4 million.
Like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Intel Corporation (NASDAQ: INTC), American Software, Inc. (NASDAQ: AMSWA) is a good stock to invest in.
Click to continue reading and see the 5 Technology Stocks that Pay Dividends.
Suggested articles:
Disclosure: None. 10 Technology Stocks that Pay Dividends is originally published on Insider Monkey.
