High Dividend Tech Stocks for 2017
A dividend yield is guaranteed money in your pocket, a payout for loyal supporters of a stock unlikely to see massive gains or falls in the near future. But what makes high dividend tech stocks for 2017 even better is that despite their stable nature, they also have strong potential to see huge growth in the coming years. High-yield technology stocks, then, are a different beast entirely, because they not only allow for that guaranteed income, but they also present the chance for index-beating growth. Technology stocks are often one of the better shares you can buy as an investor.
The key to finding the best tech stocks with high dividends is striking that balance between reliability, room for growth, and payout. This is different than, say, the best tech stocks in 2017 that may not pay dividends and are solely focused on growth potential in the coming years.
We’re looking at the best tech stocks for higher returns, sure, but the manner of those returns matters. For instance, some companies pay out smaller dividend yields based on percentages than others. But if such a company is growing faster than its competition, then the investment might register higher gains for you as an investor, versus a higher-percentage dividend yield from a company experiencing slower growth. Or worse yet, a decline.
For those looking to manage their risk, both tech ETFs and high dividend tech stocks for 2017 can help you earn returns on your investment without waking up at night drenched in a cold sweat from terror that your risky stock bet just went belly up.
That’s the key when you’re looking at these technology stocks. They need to have that growth potential in order to not only maximize how much you’ll gain from the dividend, but also how much value your asset will obtain and how much that dividend will grow over the long term.
There are a great many tech stocks with high returns, but the ones featured below are special not only for their strong dividends, but also for their penchant for innovation that could very well pan out to big gains in 2017. These companies do not rest on their laurels, and as such, are all making great strides in some of the world’s most ground-breaking tech. From virtual and augmented reality (VR and AR) to machine learning to AI to wearables, they are all making strides in some of today’s hottest and most promising markets.
Best Tech Stocks for Higher Returns
|Ticker||Dividend Rate (%)|
|International Business Machine Corp. (NYSE:IBM)||3.15|
|Intel Corporation (NASDAQ:INTC)||2.90|
|Garmin Ltd. (NASDAQ:GRMN)||3.88|
So let’s get in to why these are some of the best technology stocks with high dividend yields.
1. International Business Machine Corp. (NYSE:IBM)
International Business Machine Corp. (NYSE:IBM) has been around for over a hundred years; it has staying power. IBM has been an industry leader in innovation throughout its existence; it has vision. IBM stock pays a dividend of 3.15%; it has great returns.
These three factors are rare to find individually in a company. Combined, it makes IBM one of the most unique and valuable investments on the market today.
IBM pays out the highest yield by dollar value per share ($5.60) than any other tech dividend. That’s mainly a function of its high share price, but at the same time goes to show just how strong the company is looking in 2017. (Source: “IBM Corp,” Dividend.com, last accessed March 12, 2017.)
IBM stock has grown over six percent since the beginning of the year, and nearly 26% over the past 12 months. The world-renowned tech company is no slouch in the growth department.
And you needn’t look far to see some impressive examples of IBM trying to capitalize on future-tech.
In one week alone, the company made two major announcements in two distinct fields of cutting-edge technology.
First, the company announced that it had managed to successfully store data on a single atom for the first time. The research was published in the scientific journal Nature on March 8 and represents a strong leap forward in data storage.
Imagine hard drives capable of storing terabytes of information on surfaces smaller than a microchip. That’s the future IBM is trying to bring about. (Source: “Magnetic hard drives go atomic,” Nature, March 8, 2017.)
A second major breakthrough came from another rapid-growing technology sector: machine learning.
The company announced that it was able to produce speech recognition software that was able to actually outpace humans. With an error rate of about 5.5%, the software is roughly on par with humans, who on average, miss about five percent of spoken words. IBM is one of the industry leaders in machine learning, and this only lends more credence to that fact. (Source: “Reaching new records in speech recognition,” International Business Machine Corp., March 7, 2017.)
With this type of groundbreaking work, IBM is poised to not only continue delivering solid dividends, but also increasing its stock price.
It’s not all roses for the company, however. The tech mainstay has experienced 19 consecutive quarters of declining revenue. That has hurt IBM stock in the past, but with the large gains over the past year, it seems things are poised to turn around for the company.
The breakthrough tech is not yet ready for the mass market, by and large. But if the company continues to wow with strides in both machine learning and computing, then the future is bright for IBM.
2. Intel Corporation (NASDAQ:INTC)
Much like IBM, Intel Corporation (NASDAQ:INTC) is both situated to take advantage of the present and the future.
With a 2.90% dividend yield, Intel stock has a strong return for investors looking to wait and hold. On the other hand, Intel also has some developments in the pipe that could be a huge boon to share prices.
Consider that machine learning, AR, VR, and a whole host of other forthcoming technologies will need powerful computer chips to run them. Enter Intel.
While it hasn’t experienced the same skyrocketing growth that Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) enjoyed in 2016, it’s important to note that Intel’s market share dwarfs that of both its competitors. It is a larger beast, prone to less wild jumps, sure, but also more likely to have stability as a result of that market weight.
The past year saw Intel grow over 15%, while 2017 has started slow for the chip maker with a 1.5% decline.
But with the chip-making business currently on fire with all the new applications needing newer and more powerful chips, Intel has the potential to register solid growth, driving both stock prices and dividend yields higher.
— Intel (@intel) January 11, 2017
Add that to the company’s favorite tagline, “98% of the Cloud runs on Intel,” and that demonstrates how Intel is firmly entrenching itself in the next generation of the tech world.
Intel has its share of problems too, however, with competitors gunning to make bigger waves in the chip market.
For instance, Microsoft Corporation (NASDAQ:MSFT) has announced that it will likely use a different chip in its servers, threatening Intel’s most lucrative revenue stream, valued at $7.5 billion of Intel’s operating profit last year. (Source: “Microsoft unveils new ARM server designs, threatening Intel’s dominance,” The Verge, March 9, 2017.)
But as one of the best tech stocks with high dividends and growth potential in the burgeoning chip market, INTC stock is still a great investment.
3. Garmin Ltd. (NASDAQ:GRMN)
No longer just a small box you yell at as it demands you make a U-turn for the 16th time, Garmin Ltd. (NASDAQ:GRMN) is branching out into many new and lucrative markets with an eye towards growth.
GRMN stock also dishes out a dividend yield of 3.88%, good enough for the highest on this list and a strong return for investors. Couple that with early eight-percent year-to-date growth and over 33% in the past 12 months, and you have a winning combination for the GPS company.
But that’s not the whole story, because Garmin isn’t just a GPS company anymore.
Garmin’s last quarter reported a 20% jump in revenue for its fitness category, mainly dealing in wearable products. Its high-end “Fenix” smartwatch was mentioned as a boon to the company that helped propel outdoor segment revenue up 46% compared to the previous year. (Source: “Garmin Maps a Solid Path in Wearable Tech,” The Wall Street Journal, February 22, 2017.)
In fact, Garmin is one of the top wearable companies on the market right now.
While others have faltered in the sector, Garmin has found a winning strategy and its smartwatches are looking stronger than ever, especially compared to the flagging competition.
Garmin’s strength in the wearable sector, along with its legacy products, should help keep the share prices rising in the foreseeable future, which will only benefit the dividend.
Tech Stocks with High Returns
If you’re looking for strong tech stocks that offer a great chance for a high ROI, you could do a lot worse than the three shares above.
These are the best tech stocks for a number of reasons (as you read above), but the main driving force is their innovation, stability, eye on the future, and, of course, strong dividend yields.
For investors looking for solid companies, these three offer a great look for those looking to buy high dividend tech stocks for 2017.