Generating Passive Income: A Trio of Tech Stocks Worth Considering

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By Ronald Tech

The Rising Appeal of Tech Stocks Offering Dividends

Investors have been flocking to tech stocks due to their remarkable gains in recent times. This surge in popularity has been fueled by a resurgence in investor sentiment driving the market.

Amidst the tech craze, dividends have also captured the attention of investors. They not only act as a cushion against losses in other positions but also provide a steady stream of passive income.

Exploring Prominent Dividend-Paying Tech Stocks

Three tech companies – Dell Technologies (DELL), Garmin (GRMN), and Vipshop (VIPS) – have stood out for rewarding their shareholders with quarterly dividends.

Vipshop: A Strong Contender

Vipshop, boasting a Zacks Rank #1 (Strong Buy), operates as an online discount retailer for various brands. Earnings estimates for the current fiscal year have been on a bullish trajectory, indicating a 46% increase over the past year with a projected 7% year-over-year growth.

Dell Technologies: Information Technology Solutions Provider

Dell Technologies, holding a Zacks Rank #2 (Buy), offers IT solutions to consumers. With a 1.7% annual yield and a sustainable payout ratio at 26% of its earnings, the company seems well-positioned for growth.

Garmin: Navigating the Tech Landscape

Garmin, also a Zacks Rank #2 (Buy) company, specializes in GPS-based navigation and communication equipment. Sporting a 2.1% annual yield and a sturdy 52% payout ratio, Garmin projects stability and growth, evident from its 6.7% five-year annualized dividend growth rate.

The Appeal of Dividend-Paying Tech Stocks

Contrary to popular belief, dividend-paying stocks in the tech sector can be quite exciting. For investors seeking exposure to the sector coupled with regular payouts, Dell Technologies, Garmin, and Vipshop present attractive opportunities.

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Moreover, all three stocks enjoy a favorable Zacks Rank, reflecting optimism among analysts.