FV 5 Technology Stocks That Pay Dividends

Video Length: 00:17:18

As the stock market is sitting near all-time highs still, mostly driven by technology, we wanted to keep dividends in focus for you and to let you know that you can invest in technology, with stocks that pay you dividends.

1.) Microsoft (MSFT): This technology beast is yielding over 1% and had a recent dividend increase in the past week of 10%. In addition, their dividend payout ratio is significantly low, showing signs of dividend safety at 34%. Their stock trades slightly high at over 31x forward earning projection. Given their stronghold in the technology sector and a consistently high dividend growth rate, one should consider Microsoft stock in your portfolio.

2.) International Business Machines (IBM): IBM, or Big Blue, has an astronomically high dividend yield for the technology sector. IBM is HUGE in the cloud storage and infrastructure space, competing with the likes of Microsoft and Cisco. Further, their price to earnings ratio is at 10x earnings, significantly below the S&P 500 market as a whole. The dividend payout ratio is below 60%, at 53%, right in the sweet spot of 40%-60%. In addition, their dividend growth streak is 25 straight years, but dividend growth rate has slowed. However, this again is due to the high dividend yield of 5.3%!

3.) Apple (AAPL): Yes, one of the biggest companies out there. Everyone loves Apple. The number of buy Apple stock videos is wild. However, a dividend investor must look at the dividend stock metrics. Apple trades at 27x earnings, in line with the market, with a very low dividend payout ratio of 21%, based on forward earnings. In addition, their dividend growth streak is picking up at 7 years, but the last 2 years, Apple’s dividend growth rate is below 10%. One would expect higher dividend growth for this high growth company. Apple’s dividend yield is less than 1%, at 0.80% and one would require more for a dividend investor portfolio.

4.) Cisco (CSCO): A beast in the web-conferencing and network infrastructure space. Cisco trades a Price to Earnings ratio of ~13x earnings and they have a dividend payout ratio of 46%, based on forward earnings. In addition, Cisco has a dividend growth streak of going on 9 consecutive years, almost in double digits! Cisco also pays an above average dividend, with a dividend yield at 3.6%.

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Disclaimer: I do not recommend any decision to the reader or any user, please consult your own research. Thank you.

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