Top 10 Dividend Tech Stocks in 2021
Technology is taking over every industry. And now some of the best stocks youcan buy are dividend tech stocks. They’ve proven themselves to be consistentcash flow machines.With so much cash piling up, the tech companies can’t reasonably reinvest itall. As a result, they pass it along as dividends to investors. For example,Microsoft has paid an annual dividend for the last 14 years. Investors canthen decide what to do with the cash.Some of the dividend tech companies below haven’t paid dividends for nearly aslong, although they’re adding to their dividend history each year. Andinvestors can buy a few of these companies to set up a steady stream ofpassive income…
List of Dividend Tech Stocks
1. Apple (Nasdaq: AAPL) 2. Microsoft (Nasdaq: MSFT) 3. Intel (Nasdaq: INTC) 4. IBM (NYSE: IBM) 5. Cisco (Nasdaq: CSCO) 6. Oracle (NYSE: ORCL) 7. Broadcom (Nasdaq: AVGO) 8. Texas Instruments (Nasdaq: TXN) 9. Applied Materials (Nasdaq: AMAT) 10. Corning (NYSE: GLW)To build this list, I screened for larger companies with sound financials.These are important factors for dividend-paying companies. I then dived deeperinto each company’s business model and prospects.To get a sense of what helped them make the cut, here are a few highlights…
Top Tech Stocks Highlights
Apple’s strong ecosystem keeps its customers coming back. The company is alsofinding new ways to monetize its users. IPhone sales still make up the largestpiece of the pie, but services revenue is climbing. This segment includes AppStore fees, Apple Music, Apple Pay and many other services.When determining the best dividend tech stocks, it’s also important to look atcompany risks. And one problem with Apple is its market share in certainareas. Many regulators are targeting big tech that have created near virtualmonopolies. Although, since many of the services are free or bundled, it’s notas clear cut.There will continue to be legal pressure on Apple, but the business willcontinue to grow. Investors should also see higher dividend payouts goingforward.IBM’s valuation is beaten down. It’s been a long-running turnaround, butrevenue growth is on the horizon. Investors can buy into “Big Blue” at muchlower valuation multiples when compared with other big tech.IBM has been transitioning from its legacy mainframe business. It’s beeninvesting heavily in newer technologies, such as blockchain, cloud servicesand quantum computing. That’s just to name a few, and if any of these areastake off, that could generate hundreds of billions of dollars for the businessdown the road.The turnaround isn’t guaranteed, but that’s why IBM stock is trading on thecheap. This dividend tech stock also has a long history of paying dividends.As the share price has stalled, the dividend yield has climbed above 5%.That’s one of the highest on this list of stocks.Cisco is riding the wave of internet expansion. The company builds and sellsnetworking hardware, software and telecom equipment. As more devices comeonline, Cisco should continue to see its sales and bottom line increase.The push for 5G is also an area of growth for Cisco. It provides an automated,cloud-to-client, software-based network for 5G. And overall, 5G startedbecoming available in 2020 and should be commonly available by 2022.Another big theme for Cisco is cybersecurity. As more devices connect, there’smore room for cyber threats. This is a growing concern with businesses. As aresult, Cisco offers a wide range of security products and software. This isanother reason to be optimistic about Cisco’s future growth.Intel continues to grow with computing demand. It’s a leading semiconductorproducer with a long history of innovation. Intel powers hundreds of millionsof PCs, and it’s important to note that it’s losing some market share… but itsprofits in that segment continue to climb.Intel recently announced it’s delaying its 7-nanometer chip products by aboutsix months. And the share price dropped in response. But with continued strongcash flow, management has announced a $10 billion share buyback. If managementis able to deliver on the big future growth, this is a great move forinvestors.The company is transitioning to larger data-centric sales. Intel ispositioning itself to lead in AI, 5G and the autonomous revolution. Thecompany acquired a leader in vision-based self-driving car technology,Mobileye, for $15.3 billion.
Final Notes on Tech Stocks With Dividends
These top tech stocks have proven track records. This has helped them payreliable dividends. And as technology takes over more of the world, cash flowand payouts should continue to climb.Overall, these dividend tech stocks are some of the top investingopportunities available today. And if you want to see how these investmentscan double or triple your portfolio, check out our free investment calculator.The dividend income can be a nice boost to your annual returns.Also, if you’d like to, you can sign up for our Investment U e-letter below.It’s free and full of useful tips and research from our experts. Whetheryou’re new or already an experienced investor, there’s useful insight foreveryone.* * *10 Hot Artificial Intelligence (AI) Stocks under $10 and $5Last Updated on September 5, 2021 by Henry JohnThere is no doubt that artificial intelligence is the next big thing. We allknow this or at least some of us do. In the next few decades, ArtificialIntelligence will revolutionize every aspect of life as known today.According to a report on Grand View Research, “the global artificialintelligence market size was valued at USD 39.9 billion in 2019 and isexpected to grow at a compound annual growth rate (CAGR) of 42.2% from 2020 to2027″.Big tech companies are aware of this fact and they are all diving into thepool of artificial intelligence. The frontrunners are the usual suspects:Google, Amazon, Facebook, Nvidia, Microsoft and Tesla. And oh! Tesla not sousual, but certainly, one of the most promising.The global chip shortage has led to the tanking of many technology stocks,it’s like the entire market is crashing. Nonetheless, as most of these technames fall in price as a result of the temporary shortage of chips, theirstock price becomes cheaper, making the entry point, for new investors,extremely attractive.I’ve been warning my readers about preparing for a possible market crash byensuring they have enough cash to take advantage of drop in prices like we areseeing now across the board, especially in the technology space. Whether themarket is bullish or bearish, there’s always an opportunity.In times like this, investing in long-term stocks is the most attractiveproposition, as it ensures that come what may, over the long run yourinvestment will return promising positive gains. And the same could be saidabout long-term growth sectors like in the artificial intelligence space, overthe long-run, good AI stocks are going to be flying.Do check out my favorite AI stocks to buy and hold for the long term and thebest 5g stocks for 2021 that have the potential to drive the growth ofnumerous AI technologies.When it comes to long-term technology play, every growth investor should havetheir eyes on the artificial intelligence space. The investors who have theireyes on and money in the artificial intelligence space are, mostly, in onlarge-cap artificial intelligence stocks, the big tech companies thatincorporate AI systems in their products and/or services.These big tech companies involved in artificial intelligence usually have astock price ranging from $100 to over $1500 and that’s too much risk per sharefor a lot of retail investors, except if your brokerage is super-innovativeand offers fractional share like M1 Finance.Small-cap artificial intelligence penny stocks with great potential could be,potentially, the most rewarding long-term and short-term play for a piece ofthe AI pie. These stocks include stocks of companies manufacturing chips forthe AI market, big data and data analytics stocks, SaaS stocks, and pure AIcompanies, among others.If you are looking for cheap artificial intelligence stocks, here are 10artificial intelligence (AI) penny stocks under $10 and $5 to consider:
2. Duos Technologies Group, Inc. (NASDAQ: DUOT)
Duos Technologies Group, Inc. designs, develops, and delivers artificialintelligence-based security, safety, and analytics solutions in North America,and its stock currently trades around $10. The company’s stock has returnedover 100% YTD and that’s incredibly huge considering the nature of the marketso far this year.The company offers top intelligent solutions; rip (Railcar Inspection Portal),alis (Automated Logistics Information System), trackaware (Intelligent Rightof Way Safety and Security Solution), apis (Automated Pantograph InspectionSystem), vue (Vehicle Undercarriage Examiner), and icas (IntelligentCorrectional Automation system), all of which are highly innovative solutionsthat are transforming how critical infrastructures across various industriesare built. These industries include retail, law enforcement, transportation,oil and gas, and utility space.Duos Technologies was incorporated in 1990 and has been in the intelligentsecurity and safety solution business since 2001. It became a public companyin 2015 through an OTC listing, and in 2020, it became one of the fewcompanies to be listed on the NASDAQ having traded over-the-counter (OTC).The company has the potential to become a successful long-term AI play withits strong portfolio of intellectual property. And its core competenciesrevolve around building intelligent technologies for transforming railtransportation.
5. Remark Holdings, Inc (MARK)
Remark Holdings is an artificial intelligence company that engages in thedevelopment of AI-based solutions for businesses and software developers innumerous industries such as retail, banking, education, entertainment, andpublic safety among others.The company also operates a digital media business that delivers dynamiccontents to aid businesses and organizations in their marketing efforts.It operates as a diversified global technology company through its portfolioof companies that includes Kankan AI (a big data and artificial intelligencecompany), bikini.com (a beach lifestyle e-commerce website), RemarkEntertainment (its digital media division), vegas.com and lasvegas.com (traveland tour websites) and sharecare (a health and wellness engagement platform).In basically all of its operations, the company uses artificial intelligenceand machine learning technologies to give it an edge over competitors.SuperDraft, a daily fantasy sports platform, picked Remark Entertainment as anexclusive marketing partner ahead of the competition partly because ofRemark’s impressive AI solutions.MARK is currently trading as a penny stock under $5, however, the stock isrelatively not cheap, having a market cap over $10 million and trades at aprice over 18x TTM sales. The company however has a promising future andexperienced a major pullback in its stock price from a year’s high of $4.72per share to less than $2 per share. This pullback has made the entry priceattractive for both long-term investors and short-term traders.
7. Amesite Inc. (AMST)
Amesite Inc., an artificial intelligence driven platform and course designer,provides online products and services in the United States.It serves businesses, universities and colleges, and K-12 schools. The companyis headquartered in Detroit, Michigan.
8. Qudian Inc. (QD)
Qudian Inc. provides online small consumer credit products in the People’sRepublic of China. It uses big data-enabled technologies, including artificialintelligence and machine learning to transform the consumer financeexperience.The company offers small credit products, such as cash credit products; andmerchandise credit products to finance borrowers’ direct purchase ofmerchandise offered on its marketplace on installment basis.In addition, it operates a platform for loan recommendations and referralsservices to third-party financial service providers.Qudian Inc. was founded in 2014 and is headquartered in Xiamen, the People’sRepublic of China.
Artificial intelligence is making waves, upsetting the status quo and it’shere to stay. AI is the future, therefore, investing in artificialintelligence is like investing in the future.It’s a tough call but whatever and whenever you decide: it will be your call.Stocks are tricky right?You will find a list of articles below to help you out in making the bestpossible call.> When stocks are attractive, you buy them. Sure, they can go lower. I’ve> bought stocks at $12 that went to $2, but later went to $30. You just don’t> know when you can find the bottom.>> Peter LynchIf you have any questions or thoughts, leave a comment down below.Top Tech Stocks That Pay a DividendConservative investors tend to invest in companies that pay a dividend.Unfortunately, this has led many to avoid the top tech stocks. Why? Very fewtechnology companies pay a dividend. Since they operate in a high-growthmarket, they prefer to reinvest earnings into growth initiatives.On the bright side, there are some options for those income seeking investors.The Canadian Dividend Aristocrat list features three technology companies witha proven history of raising the dividend. Despite a flurry of recent dividendcuts, none of these top tech stocks are among the cutters.
Top-performing tech stock
Did you know about a little-known TSX-listed technology company thatoutperformed the likes of Apple (NASDAQ:AAPL) and Microsoft (TSX:MSFT) overthe past decade? Enghouse Systems (TSX:ENGH) is one of the top-performing techstocks on the TSX Index.A $10,000 investment in the company 10-years ago would be worth approximately$123,000 today. Enghouse’s share price is up by 1,140% over this time frame.Not bad for a little-known technology company.Enghouse’s outperformance should not be surprising. This enterprise managementsoftware company is expected to grow earnings at a 17% clip, which isconsistent with its five-year historical average. In 2020, Enghouse is up by9%, far outperforming the 16% loss posted by the S&P/TSX Composite Index.At 13 years, Enghouse owns the longest dividend growth streak among all toptech stocks. It also sports the highest average dividend growth rate. In 2019,the company raised the dividend by 22%.The payout ratio is only 40%, and combined with expected growth rates,investors can expect double-digit dividend growth for years to come.
A dividend at risk?
Just because a company is an Aristocrat, however, it doesn’t mean the dividendis safe. There have already been several Canadian Dividend Aristocrats toannounce a cut, and more are likely on the way. Tecsys (TSX:TCS) is one toptech stock showing signs of weakness.This supply chain management company has done quite well for investors.Although it’s down 6% year to date, the stock price is up by 97.82% over thepast five years.Unfortunately, the company’s earnings growth has been spotty. In 2018 and2019, earnings growth has been negative, leading to an unsustainable payoutratio. As of writing, the dividend accounts for 153% of earnings.On the bright side, it drops to 75% based on next year’s earnings. Given thatdemand for its supply chain products should be strong in this environment, thecompany should be well positioned to maintain the dividend. Is it the safestof the group? No, but a dividend cut doesn’t appear imminent.
A cheap and reliable income stock
The third and final tech-listed Canadian Dividend Aristocrat is Open Text(TSX:OTEX)(NADAQ:OTEX). This serial acquirer makes a name for itself byscooping up multiple companies a year and seamlessly integrating them into thefold.Open Text’s 1.70% yield is the highest among the top tech stocks. Althoughthis won’t impress those looking for a high yield, it is growing the dividendat a 15% clip.Can it sustain this level of growth moving forward? Absolutely. The payoutratio is only 40% and drops to 23% based on next year’s earnings.One of the most attractive aspects of the company is its current valuation.Trading at only 14 times forward earnings, Open Text has a PE to growth (PEG)ratio of 0.59, which makes it one of the cheapest technology companies on theIndex.Year to date, the company’s stock price has lost approximately 3% of itsvalue. In relation to the S&P Tech Index, which is up by approximately 10%this year, it has underperformed, presenting investors with an opportunity topick up a top tech stock on the cheap.This article represents the opinion of the writer, who may disagree with the“official” recommendation position of a Motley Fool premium service oradvisor. We’re Motley! Questioning an investing thesis — even one of our own —helps us all think critically about investing and make decisions that help usbecome smarter, happier, and richer, so we sometimes publish articles that maynot be in line with recommendations, rankings or other content.Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a memberof The Motley Fool’s board of directors. Fool contributor Mat Litalien ownsshares of OPEN TEXT CORP. David Gardner owns shares of Apple. The Motley Foolowns shares of and recommends Apple, Microsoft, and Tecsys Inc. The MotleyFool recommends Enghouse Systems Ltd., Open Text, and OPEN TEXT CORP andrecommends the following options: long January 2021 $85 calls on Microsoft andshort January 2021 $115 calls on Microsoft.