Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly at times, and there is no question that tech has been the leader of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out three of these stocks to buy now:
1. J2 Global, Inc. (JCOM – Free Report)
j2 Global provides cloud-based communications, storage messaging services, and digital media. Its enterprise services include eFax, eVoice, KeepItSafe, and Onebox, and it owns popular media companies like IGN, Mashable, and PC Mag. The company also provides software-as-a-service communication services and solutions.
J2 has a Zacks Rank #2 (Buy) and a dividend yield of 2.3%. Earnings are expected to improve by double-digit percentages this year, but the real story here is the valuation picture. JCOM is trading at just 12x earnings and has a PEG of 1.5, both of which look like significant discounts compared to the industry.
2. Hewlett Packard Enterprise Company (HPE – Free Report)
Hewlett Packard Enterprise is an integrated systems company focused on enterprise offerings like IT solutions, servers, and cloud-based products. The old Hewlett Packard Company might have been losing some of its clout, but the spinoff has created new efficiencies for HPE, and analysts are getting on board with this Zacks Rank #2 (Buy) stock right now.
