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 should not 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. 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) and just reported better-than-expected earnings and revenues last week. Management also provided positive top-line guidance for the current quarter. Cisco is using its current strength to reward investors and currently provides a dividend yield of about 2.63%.
2. 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) and 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 4.84%, making it one of the most attractive income options in the entire technology sector.
3. Canon, Inc. ( CAJ )
Canon is an industry leader in professional and consumer imaging equipment and information systems. The stock is currently holding a Zacks Rank #1 (Strong Buy), as well as an "A" grade for Growth and a "B" grade for Value. Canon is generating cash flow growth of nearly 30% and sports an impressive RoE of 9%. Meanwhile, the company brings in about $4.28 in cash per share and sports a Debt/Equity ratio of just 0.16. Canon also recently crushed our Zacks Consensus Estimate for earnings by more than 12%. The imaging equipment offers a 3.75% dividend yield right now.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Seagate Technology PLC (STX): Free Stock Analysis Report Canon, Inc. (CAJ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research