Other than tech stocks, investors also love dividends, as they can provide a nice buffer against drawdowns in other positions and a passive income stream.
Interestingly enough, several tech stocks—Microsoft MSFT, Dell Technologies DELL, and Apple AAPL—reward their shareholders with quarterly payouts.
Let’s take a closer look at each.
Microsoft
Tech heavyweight Microsoft is coming off a recent double beat, with the company exceeding the Zacks Consensus EPS estimate by nearly 5% and posting sales 2% ahead of expectations. Both items saw considerable growth from the year-ago period, with shares seeing buying pressure post-earnings.
Analysts have positively revised their earnings expectations across the board, with the trend notably bullish for its current fiscal year, up more than 9% to $11.76 over the last year.
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The company has increasingly rewarded its shareholders, boasting a sizable 10.5% five-year annualized dividend growth rate.
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Apple
Apple also recently reported quarterly results, bringing post-earnings fireworks. Concerning headline figures, the company posted a 1.3% beat relative to the Zacks Consensus EPS estimate and posted sales 1% ahead of expectations.
Undoubtedly worthy of a highlight, the titan announced the biggest buyback in corporate history totaling $110 billion. Reflecting further positivity, Apple also unveiled a 4% boost to its quarterly payout, reflecting the 12th consecutive year of higher payouts.
The company boasts a 5.5% five-year annualized dividend growth rate.
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Dell Technologies
DELL shares have been considerably strong year-to-date, up nearly 70% and crushing the S&P 500’s performance. Positive quarterly results have led the surge, with shares melting higher following its latest quarterly release.
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Like MSFT, analysts have become notably bullish on the company’s current year outlook, with the $7.64 Zacks Consensus EPS estimate up nearly 25% over the last year.
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Shares currently yield 1.4% annually, nicely above the average of the Zacks Computer & Technology sector. Undoubtedly pleasing investors, the company recently announced a 20% hike to its quarterly payout, reflecting its commitment to increasingly rewarding shareholders.
Bottom Line
Dividend-paying stocks don’t always have to be ‘boring,’ as many exciting companies from the technology sector also reward their shareholders with payouts.
And for those interested in gaining exposure to the sector paired with quarterly payouts, all three stocks above – Microsoft MSFT, Dell Technologies DELL, and Apple AAPL – fit the criteria nicely.
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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.
