HomeMost PopularTech Stocks 3 Tech Stocks Suited Nicely for Income Investors Unlocking Profits: 3 Tech Titans...

3 Tech Stocks Suited Nicely for Income Investors Unlocking Profits: 3 Tech Titans Enticing Income Investors

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Tech stocks are the fiery dragons of the investment realm in 2023, rising with the tempestuous winds of a rebound after a floundering 2022. Their revival comes in tow with the sagacious expectation of a less-hawkish Federal Reserve, propelling their performances to new dizzying heights.

It’s a truth universally acknowledged by investors that dividends are a cozy quilt during market downturnsβ€”a cushioning buffer against potential losses and a bubbling brook of passive income.

Curiously, amidst this melee, we find several tech stocks – Microsoft (MSFT), NetEase (NTES), and International Business Machines (IBM) – graciously bestowing bountiful quarterly payouts upon their shareholders.

Lets dig into each of these intriguing prospects.


Microsoft shares reign supreme in 2023 due to the frenzy surrounding artificial intelligence and a seismic shift in overall sentiment. Analysts raise a bullish toast to the company’s current-year outlook, with the $11.13 Zacks Consensus EPS Estimate sitting 2% higher than the previous year’s records.

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Image Source: Zacks Investment Research

MSFT shares presently offer a decent 0.8% annual yield, modestly edging above the respective Zacks sector average. The tech giant has stamped a lasting commitment to its shareholders, with a commendable 10% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

Microsoft’s prowess in generating cash fortifies its ability to dispense dividends. In FY23, the company hoarded a substantial $59.5 billion in free cash flow, with the trailing twelve-month figure closing in at an equally staggering $63.3 billion.


NetEase, Inc. is an Internet technology company engaged in weaving applications, services, and other technologies for the Internet in Chinese markets. The stock is a Zacks Rank #2 (Buy), with earnings expectations ascending across all timeframes.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares presently bear a substantial 2.3% annual yield, paired with a sustainable payout ratio lounging at 36% of the company’s earnings. NetEase has notably danced the tango of increasingly rewarding its shareholders, brandishing a flamboyant 27% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, the company’s growth profile is impossible to ignore, with consensus expectations for its current year hinting at a staggering 45% earnings growth atop 2% higher sales. Looking into FY24, estimates whisper of an additional 8% earnings growth coupled with a 12% revenue uptick.


IBM is an information technology (IT) company. Shares are the golden eagles of the last three months, soaring 18% higher than the S&P 500’s 11% gain, following better-than-expected quarterly results.

They presently bear a substantial 4.1% annual yield, in a realm far off the 0.7% average skulking within the Zacks Computer and Technology sector. Impressively, the company has earned a spot in the prestigious Dividend Aristocrats group, showcasing an unwavering dedication to its shareholders with over 25 years of inciting increased payouts.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors are smitten kittens with tech stocks. And dividends? They’re more popular than coffee at a morning meeting.

For those seeking a dalliance with both, all three above – Microsoft (MSFT), NetEase (NTES), and International Business Machines (IBM) – fit the criteria as snugly as a sock on a foot.

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Microsoft Corporation (MSFT) : Free Stock Analysis Report

International Business Machines Corporation (IBM) : Free Stock Analysis Report

NetEase, Inc. (NTES) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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