Double The Payouts With These Market Stars
When you think about tech stocks, the first thing that may come to mind are the fast growing FAANG stocks — Facebook, Apple, Amazon, Netflix and Google.
What most investors don’t associate with technology stocks, however, is dividends.
Tech stocks typically burn through cash like there is no tomorrow on research, development and marketing. That lack of free cash flow has traditionally made it impractical for tech stocks to pay dividends.
That has changed however. Some tech stocks have matured into well-established companies that generate billions of dollars of free cash flow each year.
Today, there’s a group of stocks in the market’s hottest sector that pay very rich dividends. As such they offer a compelling combination of current income AND fast-paced growth making them extra attractive in today’s market.
Fat, Juicy Tech Dividends.
As previously mentioned, tech stocks historically haven’t paid out huge dividends, but that is no longer the case.
For example, the Technology Select Sector SPDR ETF (XLK) pays out a larger than expected annual dividend of 1.2%.
Sure, 1.2% won’t make you rich but that is the average, and there are some tech stocks that pay double, triple or even quadruple that.
And not only do they pay fat dividends, there are some that have consistently raised their dividend payouts over the years.
These high-tech, dividend darlings are generally companies that have unique competitive advantages allowing for market dominance. Which in turn allows them to generate a ton of free cash flow that they can return to shareholders in the form of dividends.
Your Best Tech Double Profit Payers
Crown Castle Corp (NYSE: CCI): You couldn’t use your mobile phone if not for cellular transmission towers and Crown Castle owns 40,000 of them across the U.S. Crown Castle pays a $4.20 annual dividend or 4.1%.
Bonus: CCI has increased its dividend for 3 years in a row.
Digital Realty Trust (NYSE: DLR): Think about all the data that is being created and stored on the internet. Digital Realty operates data centers around the globe that are used to store all sorts of digital information, as well as central hubs for internet communications. DLR pays $4.04 or 3.1% dividend yield.
Bonus: DLR has increased its dividend for 12 years in a row.
Cisco (NASDAQ: CSCO): The internet would not be where it is today without Cisco’s internet routers and switches. Cisco pays $1.32 or 2.9% dividend yield.
Bonus: Cisco has increased its dividend for 6 years in a row.
Corning (NYSE: GLW): Corning got its start making cookware but now makes glass for liquid crystal displays (LCDs) screens, fiber optic cable used to power the internet, and Gorilla Glass that is used in smartphones and tablets. Corning pays a $0.72 or 2.5% dividend yield.
Bonus: Corning has increased its dividend for 7 years in a row.
Texas Instruments (NASDAQ: TXN): You may have owned a Texas Instrument calculator back in your college days but today it makes analog chips, which are used to regulate pressure, light, temperature and power for thousands of electronic devices. TXN pays $2.48 or 2.4% dividend yield.
Bonus: TXN has increased its dividend for 14 years in a row.
Intel (NASDAQ: INTC): Intel is the largest producer of semiconductor chips in the world and its microprocessors power hundreds of millions of computers, tablets and smartphones. Intel pays $1.20 or 2.3% dividend yield.
Bonus: Intel has increased its dividend for 3 years in a row.
Pretty alluring, eh?
The bottom line: Tech stocks are red hot. Even better, many are now well-established companies now paying high quality dividends.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: These are the types of fat dividend tech stocks, among many others I’ve recommended to the readers of my exclusives Infinite Income service.
For a sneak peak at those plays as well as a ton of other ways to grow your wealth click here.