Investors have their pick of eye-popping tech trends to invest in these days — like autonomous vehicles, cloud-computing, augmented reality, the Internet of Things, etc. — but top tech stocks that also pay healthy dividends are harder to come by.
That’s why we reached out to a few Motley Fool contributors to track down some of the best tech stocks on the market that are also rewarding their investors with dividends. They came back with…
Buy before Verizon’s 5G strength becomes evident
Steve Symington (Verizon): To be clear, some Verizon investors were rightly annoyed late last year when the company took a $4.6 billion writedown in the fourth quarter — a move related to the relative underperformance of its “Oath” media subsidiary.
Of course, that’s not to say Verizon’s Media businesses are inconsequential. To the contrary, any improvement to that end moving forward could be a significant catalyst for the company. But with that bandage effectively ripped off in the meantime, shareholders should keep in mind that Verizon is still a massively profitable business that’s still growing where it counts; the company added 1.2 million net wireless retail postpaid subscribers in the fourth quarter, and — thanks in part to cost-savings initiatives — adjusted net earnings per share soared 30% in Q4 despite a modest 1% increase in revenue. Verizon’s operating cash flow also climbed more than 40% last year to $34.3 billion.
Looking ahead, Verizon is poised to start reaping the benefits of its massive investments in recent years to solidify its status as an early industry leader for 5G technology. 2018 marked the launch of Verizon’s first commercial 5G network, and the company anticipates ramping its first mobile and in-home 5G networks in 2019.
With its core business performing well and a juicy dividend yielding 4.2% annually as of this writing, I think Verizon stock could be a perfect option for income-seeking investors.
Take full advantage of this cyclical industry
Anders Bylund (Western Digital): Data-storage veteran Western Digital has a lot of upside. Unlike arch-rival Seagate Technology (NASDAQ: STX), this company has augmented its hard-drive business with a serious solid-state strategy. Several industry analysts expect NAND memory chip prices to stabilize and maybe even turn back up by the end of 2019, putting makers of NAND-based storage devices in position for vigorous top-line growth and expanding profit margins over the next couple of years. The turning point could arrive as soon as the second quarter.
In the meantime, Western Digital shares are…
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