5 High-Flying Large Cap Tech Stocks With Fat Dividend Yield
Zacks Investment Research | Sep 17, 2019 07:52AM ET
The global financial market has hit a rough patch, thanks to the escalating market volatility due to the US-China trade tension, waning economy and geopolitical turmoil. Moreover, the recent attack on Saudi oil plants induced a spike in oil prices, which if persisted, will be detrimental to global economy.
Investors are now looking for relatively safe havens to invest in. Stocks with high dividend yield are promising investment bets as these companies offer good payoff options. Acting as a hedge against economic or political instability as well as stock market volatility, these stocks become more attractive, as investment risks escalate.
Moreover, the stability that the large-cap stocks (market capitalization of more than $10 billion) provide compared to small and mid-cap counterparts makes those a solid investment pick.
Notably, as large cap stocks offer high degree of maturity, the same lack in rapid growth with respect to share price movement. Therefore, in order to compensate shareholders, the companies distribute a portion of their profits as dividends while retaining the rest to reinvest in the business.
Dividend investing thus provides a significant source of income for investors, allowing them to capture some of the returns of their investment on a regular basis.
Technology Stocks Offer Solid Returns
Technology has been one of the most bankable sectors for investors, given the new opportunities of growth it presents. Rapid proliferation of AI, cloud computing, IoT, cyber security, online streaming, autonomous vehicles and wearables continue to drive the technology industry.
However, when investors look for dividend stocks, they tend to overlook the technology sector as most technology firms plow back their earnings into their businesses in order to fuel growth.
Nonetheless, surging revenues and improving margins have helped the large cap tech companies to generate solid cash flows. As a result, many tech firms have started paying out hefty dividends to shareholders and are growing the dividend rate as well.
Here we pick five technology stocks that reward investors with steady dividends.
Key Picks
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