Undeniably, the innovation space has been the darling of Wall Street, although shifting sands may prompt a discussion about tech dividend stocks. The tech-centric Nasdaq Composite index gained over 29% since the start of the year, well above the benchmark S&P 500’s performance of under 13% during the same period. Still, harsh realities cannot be ignored.
For example, in the trailing one-month period, the Nasdaq slipped more than 2%. Relatively speaking, that’s a better performance than the S&P 500’s print of down 3.2%. Nevertheless, neither index has demonstrated a decisively superior weathering of the storm. Therefore, the concept of tech stocks with dividends should appeal to concerned market participants.
Effectively, investors will be getting the best of both worlds. With tech dividend stocks, they’re exposed to the long-term fortunes of established innovation juggernauts. At the same time, they can collect passive income while waiting for the upside to materialize.
Of course, no investment is without risk. However, buying established innovators that pay may provide a nice balance. On that note, below are tech stocks with dividends to consider.
Accenture (ACN)
A professional services firm, Accenture (NYSE:ACN) specializes in information technology services and consulting. Part of the esteemed Global Fortune 500, Accenture offers vast relevancies. As a result, shares gained almost 16% of equity value since the start of the year. That’s the case even with a contested ecosystem in the innovation space.
Still, it can’t be ignored that ACN went flat at the end of May this year. Further, the IT consultancy sector as enterprises looked to save money. Nevertheless, Accenture believes that it can overcome the challenges the industry faces. Of course, there may be some frustrating sideways consolidation while waiting for shares to regain positive momentum.
With that, investors may want to consider ACN as one of the tech dividend stocks. Currently, it carries a , which isn’t generous. However, it has a history of 19 years of consecutive dividend increases.
Also, analysts rate shares a . Interestingly, the high-side target comes in at $390, implying 25% growth.
NetApp (NTAP)
Headquartered in San Jose, California, NetApp (NASDAQ:NTAP) is a data storage and data management services company. Fundamentally, the data storage market offers significant upside. Per Fortune Business Insights, this sector will this year. By 2030, the space will clock in at $777.98 billion. This translates to a compound annual growth rate (CAGR) of 17.8%.
Right there, that’s enough reason to consider NTAP one of the tech stocks with dividends. Also, it’s a solid performer in terms of capital gains. Since the beginning of this year, NTAP moved up more than 24%. Enticingly, there could still be some growth remaining. Right now, shares . In contrast, the underlying sector comes in at 21.54x.
Regarding passive income, NetApp carries a . Just as well, the payout ratio sits at 32.47%, making NTAP one of the top tech dividend stocks. Per TipRanks, analysts peg NTAP as a with an $80.80 target, implying 7% upside.
Hewlett Packard Enterprise (HPE)
A multinational IT company, Hewlett Packard Enterprise (NYSE:HPE) is a business-focused entity, working in servers, storage, networking, containerization software, and consulting and support. According to Future ÃÛÌÒ´«Ã½ Insights, the may hit a valuation of $9.64 billion by 2032. That’s up significantly from the $3.256 billion valuation it achieved last year.
Based on this information, this segment alone may enjoy a CAGR of 11.5%. That would be great news for HPE, which operates under a competitive paradigm. Since the start of the year, shares gained just under 5%, which isn’t that inspiring. However, in the trailing one-year period, HPE skyrocketed just over 35%. Therefore, the potential is there.
While you’re waiting, you can pick up a . Enticingly, the payout ratio sits at only 22.31%, providing strong confidence for yield sustainability. Thus, HPE is a top player among tech dividend stocks. Analysts rate shares a with an $18.40 target, implying over 9% growth potential.
Qualcomm (QCOM)
Based in San Diego, California, Qualcomm (NASDAQ:QCOM) ranks among the top multinational innovators. , it creates semiconductors, software, and services related to wireless technology. Because of its established presence, QCOM also happens to be one of the tech stocks with dividends. Unfortunately, its performance this year hasn’t been impressive to put it diplomatically.
Since the January opener, QCOM gained just over 3%. Fundamentally, the broader semiconductor industry faced significant concerns and still does. With demand for smartphones and PCs waning, Qualcomm’s total addressable market took a hit. However, the underperformance also means that QCOM
. That’s favorably lower than 79.33% of the chip industry.
Looking at passive income, Qualcomm offers a forward yield of 2.89%. Also, the company features a history of 21 years of consecutive dividend increases. Thus, it’s a great candidate for tech dividend stocks. Lastly, analysts rate QCOM a with a $135.35 target, implying 22% upside.
Juniper Networks (JNPR)
Based in Sunnyvale, California, Juniper Networks (NYSE:JNPR) is a multinational corporation that develops and markets networking products. These include routers, switches network management software, network security products, and software-defined networking technology. Naturally, all these specialties command exceptional relevance. However, the security element distinguishes JNPR as a top candidate for tech dividend stocks.
In August, household goods giant Clorox (NYSE:CLX) disclosed it suffered a serious cyberattack. Recently, the company revealed the extent of the financial harm through its preliminary fiscal first-quarter report. Unsurprisingly, the news took investors by shock, who subsequently exited out of CLX as fast as they could. By logical deduction, the incident only served to underscore the importance of .
The other element that bolsters JNPR is the passive income. Here, Juniper offers a . Just as encouragingly, the payout ratio sits at 37.36%, making JNPR one of the most attractive tech stocks with dividends.
with a $32.64 target, implying nearly 23% growth.
RTX (RTX)
Understandably a controversial company, RTX (NYSE:RTX) recently . Previously, it operated under the banner Raytheon Technologies. More than likely, the move won’t stop investors from viewing the firm as one of the top defense contractors. However, it also enjoys other avenues working in its favor, such as the . As such, RTX ranks among the best tech dividend stocks.
According to McKinsey & Company, the space market – which recently grew to approximately $447 billion – . Just as importantly if not more so, many countries are competing for dominance in space. Naturally, not all of these nations are friendly to the U.S. and the West in general. So, like it or not, RTX is supremely important.
Turning to passive income, RTX commands a . Also, it enjoys 30 years of consecutive dividend increases. Thus, it’s one of the tech stocks with dividends to put on your shortlist.
Lastly, with an $88.29 target, implying almost 27% upside.
International Business Machines (IBM)
One of the tech dividend stocks that arguably gets more attention for its passive income rather than its innovations, IBM (NYSE:IBM) has long symbolized a frustrating case for investors. On one hand, it’s difficult to ignore its rich history. Founded in 1911, “Big Blue” as it’s known has gone through multiple bullish and bearish cycles. Still, on the flip side, it hasn’t kept pace with modern competitors.
Since the start of the year, IBM stock gained only slightly above parity. In the past 60 months, shares have returned less than 6%. I’m sorry but as an innovator, that’s difficult to swallow. Still, a case could be made that it’s unfairly overlooked. Given its with artificial intelligence protocols, Big Blue deserves at least some consideration. Plus, it only trades at a .
What can be said is that IBM provides a big dividend. Its , well above the tech sector’s average yield of 1.37%. Also, it commands 30 years of consecutive dividend increases.
Finally, , implying under 4% growth. Still, this could be deeply off based on its valuation.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
