These technology stocks have a return of at least 2% and outperformed in 2021.
While the big rebound from last year’s pandemic-era lows seemed almost unstoppable in 2020, it now looks like the stock market could be in trouble as we head into the fourth quarter. Unsurprisingly, the S&P 500 has fallen from its all-time high in September, from recent jobs data to inflation concerns and growing talk of a government shutdown. But the long-term outperformance of technology stocks, coupled with the fact that many of these high-flying names also offer above-average dividends, should provide some stability for investors unafraid of short-term volatility. Here are seven top tech dividend shares buy with a yield of 2% or better right now.
ASE Technology Holding Co. Ltd. (ASX)
ASE Technology, a Taiwan-based semiconductor stock of approximately $19 billion, is primarily engaged in “packaging and testing services” rather than designing its own chips. While there are smaller margins in this type of business, there is also a high degree of certainty as other semiconductor companies outsource services to ASE. Admittedly, the company hit a rough patch after eliminating its dividend in 2019 and suffering pandemic-related supply disruptions in 2020. But shares are up more than 40% so far to overshadow their 2015 highs after the recent reinstatement. of the dividend and on the hope of continued success in 2022.
Term dividend yield: 3.5%
Cisco Systems Inc. (CSCO)
One of the first companies from the old guard of technical stocks In order to pay significant dividends to shareholders, Cisco has been paying a dividend since 2011, and that quarterly payout has currently risen from 6 cents to 37 cents per share — a more than sixfold increase in 10 years, despite a global pandemic and major disruptions to enterprise tech over the past ten years. And lest you think Cisco is too outdated to be profitable, CSCO stock has risen more than 40% in the past year to outperform the S&P 500 and deliver its stable earnings to shareholders.
Dividend Yield: 2.7%
Hewlett Packard Enterprise Co. (HPE)
Most investors probably recognize the Hewlett Packard brand from laptops or inkjet printers of yesteryear. After restructuring in 2014, HP Inc. (HPQ) took over this consumer-oriented product line and left while HPE remained as a stock of data infrastructure and enterprise technology services. It is this second company that dividend investors should be of interest, because this side of the business isn’t concerned about consumer spending trends or the death of printers and copiers in a digital age. Instead, it’s entering into long-term service contracts with businesses — and while business isn’t booming per se, both profits and sales will rise both this fiscal year and FY2022. What’s more, with projected earnings per share close to $2 next year, but dividends as low as 48 cents a year, there’s plenty of room for increases, even if those optimistic targets fall a little short.
Dividend Yield: 3.7%
McAfee Corp. (MCFE)
Perhaps one of the most generous tech dividend stocks in recent times, online security firm McAfee announced a special dividend of $4.50 in August, a huge payday on top of its current quarterly distribution of 11.5 cents. And by the way, that dividend is up from 8.7 cents at the end of 2020. Admittedly, the company doesn’t have much history after a recent spin-off from chipmaker Intel Corp. (INTC). And since the special dividend was a one-time generosity, the stock has pulled back a bit now that the payment is in the rearview mirror. But the stock is still up more than 50% to date to make MCFE one of the top-performing technology stocks, and the annualized dividend is still over 2%, even ignoring the August payday.
Dividend Yield: 2.1%
NetApp Inc. (NTAP)
With a boost in July that now gives NetApp a quarterly dividend of 50 cents, this technology stock has seen an impressive growth of about 163% in its payouts, compared to just 19 cents in early 2017. Some of NTAP’s recent success has been driven by pandemic-related disruptions that have impacted his business. After all, this company is a major player in cloud services to manage and share data on-premises, including remote desktop access and backup and compliance services. But with earnings expected to grow at 23% this fiscal year, it’s barely slowing down — and that generous dividend is more than sustainable for years to come.
Dividend Yield: 2.2%
Seagate Technology Holdings PLC (STX)
Seagate has long been on the radar of dividend stock investors, despite admittedly being involved in a rather old-fashioned corner of the tech industry — namely hard drives used in servers and laptops and the like for local data storage. While the vast majority of businesses and even many consumers have migrated to cloud-based data solutions, the fact remains that in 2021 hardware will still be a thing. And as proof, consider that STX revenues in each of the last two fiscal years despite pandemic-related challenges and supply chain disruptions. Earnings are also moving higher, comfortably supporting a dividend above most S&P 500 stocks — technical companies or else.
Dividend Yield: 3.2%
United Microelectronics Corp. (UMC)
UMC is a Taiwan-based microchip manufacturer with revenues of approximately $29 billion that has recently been able to command high prices for its services due to ongoing supply chain disruptions and associated disruptions. global chip shortage. In a nutshell, United Microelectronics is an essential stopgap solution for many companies as it sees larger orders to make high-tech components as quickly as possible amid rising demand. Recent major investments to upgrade production capacity have paid off, but have not stood in the way of a generous payout on top of the impressive 170% run over the past 12 months.
Dividend Yield: 2.4%
Seven of the best dividend-paying technology stocks to buy:
— ASE Technology Holding Co. Ltd. (ASX)
— Cisco Systems Inc. (CSCO)
— Hewlett Packard Enterprise Co. (HPE)
— McAfee Corp. (MCFE)
— NetApp Inc. (NTAP)
— Seagate Technology Holdings PLC (STX)
— United Microelectronics Corp. (UMC)