3 Tech Stocks for Dividend Investors to Buy Now

It has been no secret that the technology sector has been at the forefront of the market’s strong bull run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.

Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors shouldn’t feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.

By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!

Check out three of these stocks to buy now:

1.       Broadcom Limited (AVGO)

Broadcom is one of the largest semiconductor manufacturing firms in the world. The chipmaker specializes in wired infrastructure, wireless communications, enterprise storage, and industrial solutions. Broadcom is currently a Zacks Rank #1 (Strong Buy). Management is generating cash flow growth of more than 57% right now, thanks in part to its better-than-industry average 10% net margin. The firm’s return on equity is an impressive 29%. Broadcom uses its remarkable balance sheet to reward investors and currently offers a dividend of 2.63%.

 

2.       Cisco Systems, Inc. (CSCO)

Cisco is a worldwide leader in the information technology industry. The company develops and sells networking hardware, telecommunications equipment, and other high-technology services and products. Cisco is currently sporting a Zacks Rank #2 (Buy). The firm is currently generating about $2.63 in cash per share, significantly outpacing the “Computer – Networking” industry average of just $0.18 per share. Meanwhile, Cisco has an impressive net margin of 20% and delivers return on equity of 17%. Cisco uses its financial strength to reward investors with a 2.81% dividend.

 

3.       Seagate Technology PLC (STX)

Seagate is a global leader in hard drive manufacturing. It offers a range of disk drive products for the enterprise, client computing, and client non-computing market applications. Seagate is currently sporting a Zacks Rank #2 (Buy), as well as an “A” grade for Value in our Style Scores system. The firm is currently generating a staggering $6.78 in cash per share on the back of 32% cash flow growth. Seagate takes advantage of its strong cash position by offering investors a dividend of 4.79%, making it one of the most attractive income options in the entire technology sector.

 

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The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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