11 Best Technology Dividend Stocks To Buy
In this article, we discuss 11 best technology dividend stocks to buy. You can skip our detailed analysis of dividend stocks and the tech sector, and go directly to read 5 Best Technology Dividend Stocks To Buy.
Technology stocks, following significant losses in 2022, have made a strong comeback in 2023, outperforming the market. Despite a slower economy, investors are turning to market segments that promise appealing growth. The Nasdaq Composite is up 28.18% year-to-date, compared to a 12.83% return of the S&P 500. In addition to this, tech companies that are both profitable and have established business models have returned capital to their shareholders by increasing their dividend payments. The S&P Technology Dividend Aristocrats Index, which tracks the performance of tech and tech-related stocks that have raised their dividends for seven consecutive years or more, has gained 11.57% this year so far. According to a report by ProShares, while S&P 500 earnings have remained stagnant, the typical Technology Dividend Aristocrat stock saw a 21% increase in earnings by the end of their last fiscal year.
According to analysts at Goldman Sachs Group Inc., a recent decline in the Nasdaq 100 has made tech stocks unusually affordable when considering earnings estimates, especially in terms of a valuation metric called the PEG ratio. Goldman's analysis reveals that the seven largest tech stocks currently have a PEG ratio of 1.3, which is significantly lower than the median S&P 500 stock's 1.9. This represents the most substantial discount since January 2017 and has occurred only five times in the past decade.
As mentioned above, tech stocks also provide dividends to shareholders, and investors are particularly focused on dividends in the present economic climate. Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Oracle Corporation (NYSE:ORCL) are some of the best dividend stocks from the tech sector that pay regular dividends to shareholders. In this article, we will further discuss tech dividend stocks to buy now.
Photo by NeONBRAND on Unsplash
Our Methodology:
We searched through Insider Monkey's database of 910 hedge funds to identify tech stocks that offer dividends to shareholders. From this selection, we chose dividend-paying stocks within the tech sector that have consistent track records of dividend payments. The stocks are ranked in ascending order of the number of hedge funds having stakes in them as of Q2 2023.
11. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 26
Corning Incorporated (NYSE:GLW) is a global technology company that specializes in a diverse range of products and solutions, primarily in the fields of glass, ceramics, and related materials. In the second quarter of 2023, the company posted revenue of $3.48 billion, which fell by 7.4% from the same period last year. However, the company improved its free cash flow to $310 million.
On October 4, Corning Incorporated (NYSE:GLW) declared a quarterly dividend of $0.28 per share, which was in line with its previous dividend. In 2023, the company stretched its dividend growth streak to 13 years, which makes it one of the best dividend stocks from the tech sector. The stock has a dividend yield of 4.06%, as of October 19.
In addition to GLW, Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Oracle Corporation (NYSE:ORCL) are some of the best dividend stocks to consider within the tech sector.
At the end of Q2 2023, 26 hedge funds tracked by Insider Monkey reported having stakes in Corning Incorporated (NYSE:GLW). The collective value of these stakes is over $344 million. With over 2.8 million shares, Balyasny Asset Management was the company's leading stakeholder in Q2.
10. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Number of Hedge Fund Holders: 27
Skyworks Solutions, Inc. (NASDAQ:SWKS) is a California-based semiconductor company that specializes in designing and manufacturing integrated circuits used in wireless communication applications. On August 8, the company announced a 9.7% hike in its quarterly dividend to $0.68 per share. This marked the company's ninth consecutive year of dividend growth, which places it as one of the best dividend stocks on our list. The stock's dividend yield on October 19 came in at 2.89%.
In fiscal Q3 2023, Skyworks Solutions, Inc. (NASDAQ:SWKS) generated $305.7 million in operating cash flow. The company ended the quarter with nearly $740 million in cash and cash equivalents, up from $587 million in the prior-year period.
As of the end of Q2 2023, 27 hedge funds in Insider Monkey's database owned stakes in Skyworks Solutions, Inc. (NASDAQ:SWKS), compared with 34 in the previous quarter. The consolidated value of these stakes is over $292.2 million.
The London Company mentioned Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q2 2023 investor letter. Here is what the firm has to say:
“Skyworks Solutions, Inc. (NASDAQ:SWKS) – SWKS underperformed during 02 reflecting slowing growth at smartphone manufacturers. In the most recent quarter, gross margins were temporarily impacted by a cut in fab utilization and the rightsizing of higher inventories. Looking longer-term, we believe SWKS’s expertise in RF semiconductor design and manufacturing, coupled with its broadening product portfolio are enduring competitive advantages.”
9. Seagate Technology Holdings plc (NASDAQ:STX)
Number of Hedge Fund Holders: 34
Seagate Technology Holdings plc (NASDAQ:STX) is a leading global manufacturer of data storage solutions. The company specializes in the development and production of various storage devices and technologies. Its cash position remained strong in fiscal Q4 2023 as it generated $218 million in operating cash flow and its free cash flow amounted to $168 million. In fiscal year 2023, the company returned $990 million to shareholders through dividends and share repurchases.
Seagate Technology Holdings plc (NASDAQ:STX) offers a quarterly dividend of $0.70 per share for a dividend yield of 4.09%, as recorded on October 19.
The number of hedge funds tracked by Insider Monkey owning stakes in Seagate Technology Holdings plc (NASDAQ:STX) grew to 34 in Q2 2023, from 26 in the previous quarter. The overall value of these stakes is over $1.5 billion.
8. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 51
An American multinational tech company, International Business Machines Corporation (NYSE:IBM) is next on our list of the best dividend stocks from the tech sector. The company has been raising its dividends for 28 consecutive years and currently pays a quarterly dividend of $1.66 per share. The stock's dividend yield on October 19 came in at 4.74%.
International Business Machines Corporation (NYSE:IBM) reported a strong cash position in the first six months of 2023. The company's operating cash flow year-to-date came in at $6.4 billion and its free cash flow stood at $1.4 billion. It also returned $1.5 billion to shareholders through dividends during the second quarter.
At the end of June 2023, 51 hedge funds in Insider Monkey's database owned investments in International Business Machines Corporation (NYSE:IBM), up from 49 in the previous quarter. The consolidated value of these stakes is nearly $814 million.
Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 55
Cisco Systems, Inc. (NASDAQ:CSCO) is a leading player in the information technology (IT) and networking industries, providing a wide range of products and services. In fiscal Q4 2023, the company reported revenue of $15.2 billion, which showed a 16% growth from the same period last year. Its operating cash flow jumped by 62% on a year-over-year basis to $6 billion.
Cisco Systems, Inc. (NASDAQ:CSCO), one of the best dividend stocks, returned $1.6 billion to shareholders through dividends in the fourth quarter of 2023. The company has been raising its dividends consistently for the past 16 years. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 2.90%, as of October 19.
At the end of Q2 2023, 55 hedge funds tracked by Insider Monkey reported having stakes in Cisco Systems, Inc. (NASDAQ:CSCO), worth collectively over $1.48 billion.
6. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 56
Texas Instruments Incorporated (NASDAQ:TXN) is a global semiconductor company that designs and manufactures a wide range of analog and digital integrated circuits. The company pays a quarterly dividend of $1.30 per share, having raised it by 4.8% in September this year. This marked the company's 12th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock's dividend yield came in at 3.43% on October 19.
Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Oracle Corporation (NYSE:ORCL) are some other dividend stocks from the tech industry that are grabbing investors' attention.
As of the end of Q2 2023, 56 hedge funds owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), up from 52 in the previous quarter. The collective value of these stakes is over $2.34 billion.
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Disclosure. None. 11 Best Technology Dividend Stocks To Buy is originally published on Insider Monkey.
