Not too long ago, tech stocks were the pearl of the investing world, riding high on the wings of the artificial intelligence (AI) frenzy. They stole the limelight, captivating the hearts of many investors with their splendid performance.
Despite the allure of tech stocks, dividends have always had a special place in the hearts of investors. Offering a safety net against market downturns and a steady stream of passive income, dividend-paying companies are often well-established players willing to share the wealth with their loyal shareholders.
If you’re eager to nestle into both worlds, Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) stand out among tech stocks for their quarterly dividend payouts.
Vertiv: Soaring 100% YTD
Vertiv shares have been soaring in 2024, basking in the glow of robust AI-driven quarterly results, with gains surpassing 100% and leaving the S&P 500 trailing far behind. Analysts have showered it with bullish revisions, marking a 64% increase over the past year.
Image Source: Zacks Investment Research
Despite offering a modest annual yield of 0.1%, Vertiv remains a prime choice for income-focused investors seeking a slice of the AI pie, particularly in the data center realm.
NetApp: Exceeding Expectations
NetApp hasn’t been shy about its success this year, boasting nearly a 40% increase in share value driven by stellar quarterly performances. The company has made a habit of outshining financial forecasts, with an average 8% beat on earnings per share across its last four releases.
Image Source: Zacks Investment Research
With a solid annual yield of 1.6%, NetApp’s dividend payout exceeds the average of its Zacks Computer and Technology sector. The company has also shown its commitment to shareholders by raising dividends thrice in the last five years.
Roper Technologies: Delivering Consistent Growth
Roper Technologies may not have had the most stellar year, but the tables turned recently, with a 6% rise compared to the S&P 500’s modest 2% uptick. The company’s streak of exceeding earnings and revenue projections in seven consecutive quarters speaks volumes about its performance.
With robust sales growth marked by double-digit year-over-year increases in its last six periods, Roper Technologies offers an annual yield of 0.5%, landing on the more conservative end of the dividend spectrum.
However, its impressive 10.2% annualized dividend growth over five years showcases a strong commitment to reward its shareholders.
Image Source: Zacks Investment Research
Final Thoughts
Dividend-paying stocks can also come from dynamic sectors like tech, with companies not shying away from sharing their success with quarterly payouts.
For those with a hunger for tech exposure and an eye on dividends, the trio of Vertiv (VRT), NetApp (NTAP), and Roper Technologies (ROP) could be just the ticket.
In addition to passive income streams and tech sector exposure, all three boast a favorable Zacks Rank, a testament to the optimism brewing among analysts.
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