Top 8 Technology Stocks for Dividends (NASDAQ)

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According to Yahoo Finance and Kiplinger, These are the best eight Nasdaq-listed companies with generous dividends that have the potential to grow. The Nasdaq Composite index which is the second-largest exchange in the world by market capitalization and essentially consists of every domestic and foreign stock that trades on the exchange, has long been heavy on technology. This list should not however be seen as an endorsement, proper research should be carried out on the companies before making an investment.

1. APPLE ($APPL):

52-week range: $92.00 – $134.54
Market capitalization: $544.0 billion
Annual dividend rate per share: $2.08
Yield: 2.1%
Price-earnings ratio: 11

“The stock sells for 11 times estimated year-ahead earnings, well below the S&P’s P/E of 16. The company holds about $216 billion in cash and securities, which works out to about $39 per share. If you subtract that cash from the share price, Apple’s P/E falls to just 6. “It’s a deal in broad daylight,” says McKinney. Since Apple resumed paying a dividend in 2012, it has boosted its payout at a 9.5% average annual pace.”

2.Cisco Systems ($CSCO)

52-week range: $22.47-$30.31
Market capitalization: $134.3 billion
Annual dividend rate per share: $1.04
Yield: 3.9%
Price-earnings ratio: 12

“Cisco’s stock, at 12 times estimated earnings, looks like a bargain, even after it jumped 10% on February 10 after the company announced a surprise 24% increase in the dividend. Plus, the company has $60 billion in cash and securities on hand.”

3.Fifth Third Bancorp ($FITB)

52-week range: $13.84-$21.93

Market capitalization: $12.1 billion

Annual dividend rate per share: $0.52

Yield: 3.4%

Price-earnings ratio: 10

“The upshot is that Fifth Third is gradually becoming a stable, boring bank – and that’s a good thing. CEO Greg Carmichael noted on the company’s January 21 earnings call that Fifth Third is aiming to focus on high-quality loans, on building a strong balance sheet and on fostering greater earnings predictability. It is in the middle of a plan to close more than 100 branches, aiming to save costs as more customers manage their finances online.”

4. Intel ($INTC)

52-week range: $24.87-$35.59

Market capitalization: $139.2 billion

Annual dividend rate per share: $1.04

Yield: 3.5%

Price-earnings ratio: 12

“Intel has been a consistent dividend payer. It has boosted its distribution at a 10% annual rate over the past decade. Intel generally pays out less than 50% of its earnings in the form of dividends. That’s fairly low, which signals that Intel will likely be able to continue paying its dividend even if it hits a rough patch. For example, in 2008 and 2009, during the Great Recession, Intel maintained its dividend rate even as profits stumbled.”

5. Microchip Technology ($MCHP)

52-week range: $37.77-$52.44

Market capitalization: $8.7 billion

Annual dividend rate per share: $1.44

Yield: 3.4%

Price-earnings ratio: 15

“Microchip has been a slow-but-steady dividend payer. Although it has only increased its payout at an annual clip of 1% over the past five years, it has never cut its dividend since it began paying one in 2002.”

6. Microsoft (MSFT)

52-week range: $39.72-$56.85

Market capitalization: $414.6 billion

Annual dividend rate per share: $1.44

Yield: 2.7%

Price-earnings ratio: 18

“Microsoft has raised its dividend at an annualized rate of 15 over the past decade. Meanwhile, the company has $102.3 billion in cash and securities on its balance sheet.”

7. PayChex ($PAYX)

52-week range: $41.59-$54.78

Market capitalization: $18.3 billion

Annual dividend rate per share: $1.68

Yield: 3.3%

Price-earnings ratio: 24

“Paychex has no debt, and the company has never cut its dividend in the 26 years it has paid one. Paychex even managed to hike its payout during 2008, in the midst of the Great Recession. Over the past decade, the company has boosted its dividend by an average rate of 10% per year.”

8. Western Digital ($WDC)

52-week range: $38.64-$111.84

Market capitalization: $10.1 billion

Annual dividend rate per share: $2.00

Yield: 4.6%

Price-earnings ratio: 7

“Although Western Digital’s stock has shed 39% since the SanDisk deal was announced on October 21 but if the deal is completed, the acquisition would make Western Digital the second-biggest player in the global market for solid-state drives, which have been displacing hard-disk drives”

Read full report from Kiplinger

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