2 Top-Ranked Tech Stocks To Buy For Passive Income


black laptop computer keyboard in closeup photoImage Source: PixabayTech stocks have been red-hot in November, delivering outsized gains. They’ve overall jumped back in favor in 2023, particularly following a tough 2022 and excitement surrounding artificial intelligence applications.Other than tech stocks, investors also love dividends, as they can provide a nice buffer against drawdowns in other positions and a passive income stream. And interestingly enough, several tech stocks – Broadcom (AVGO) and Microsoft (MSFT) – reward their shareholders with quarterly payouts.On top of tech exposure paired with a passive income stream, both sport a favorable Zacks Rank, reflecting optimism among analysts. Let’s take a closer look at each.BroadcomBroadcom, a current Zacks Rank #2 (Buy), is a premier designer, developer, and global supplier of a broad range of semiconductor devices. AVGO shares currently yield a solid 1.9% annually, nicely above the Zacks Computer and Technology sector average of 0.7%.And the company has shown a notable commitment to increasingly rewarding shareholders, boasting a sizable 16.6% five-year annualized dividend growth rate. Please note that the chart below is on an annual basis.Zacks Investment ResearchImage Source: Zacks Investment ResearchThe company’s payout has been protected by the company’s impressive cash-generating abilities. AVGO generated roughly $16.3 billion in free cash flow throughout its FY22, improving 22% on a year-over-year basis.The chart below is on a quarterly basis.Zacks Investment ResearchImage Source: Zacks Investment ResearchKeep an eye out for the company’s upcoming quarterly release expected on December 7th, as the Zacks Consensus EPS Estimate of $10.96 suggests growth of 5% from the year-ago period, with analysts slightly taking their expectations lower since August.Top line revisions have been more positive, with the $9.3 billion Zacks Consensus Estimate 0.3% higher over the same period and reflecting growth of 4% year-over-year. Broadcom has been a stellar earnings performer, exceeding consensus revenue and earnings expectations in 14 consecutive releases.Zacks Investment ResearchImage Source: Zacks Investment ResearchMicrosoftMicrosoft shares have been big-time outperformers in 2023 thanks to artificial intelligence excitement and a broader sentiment shift overall. The stock is currently a Zacks Rank #2 (Buy), with earnings expectations increasing across nearly all timeframes.Zacks Investment ResearchImage Source: Zacks Investment ResearchMSFT shares presently yield a respectable 0.8% annually, modestly above the respective Zacks sector average. And the tech titan has shown a commitment to shareholders, carrying a 10% five-year annualized dividend growth rate.Zacks Investment ResearchImage Source: Zacks Investment ResearchLike AVGO, Microsoft’s cash-generating abilities help secure the payout. The company generated a sizable $59.5 billion in free cash flow in FY23, with the trailing twelve-month figure totaling an equally impressive $63.3 billion.The chart below is on a quarterly basis.Zacks Investment ResearchImage Source: Zacks Investment ResearchBottom LineWho doesn’t love dividends? They provide a passive income stream, allow for maximum returns through dividend reinvestment, and provide a shield against drawdowns in other positions.And who doesn’t love technology stocks? Their explosive growth and momentum in 2023 are hard to ignore, with many looking for exposure.For those seeking dividend-paying technology stocks, both companies above – Broadcom and Microsoft – could be great considerations.Both reward their shareholders nicely and sport favorable Zacks Ranks, with the latter reflecting optimism among analysts.More By This Author:Urban Outfitters Surpasses Q3 Earnings And Revenue Estimates Buy These 3 Invesco Mutual Funds For Remarkable Returns Bear of the Day – Tyson Foods

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