7 Double-Threat Dividend Stocks in Tech
Income investors typically seek ample yield in their dividend stocks, but dividend sustainability matters every bit as much.
Just ask GameStop (GME) investors, who saw a 19%-plus dividend yield on May 4 turn into a nonexistent yield after the retailer suspended its payout to save cash in an attempt to salvage its troubled business.
A high yield can be a sign of a troubled distribution, but it doesn't have to be. There are hundreds of stable dividend stocks with above-average yields - including a few in the typically growth-minded technology sector. Better still: These are affordable, sustainable payouts that even have room to grow.
We've leaned on the DIVCON system from exchange-traded fund provider Reality Shares to identify seven tech stocks with market-beating dividends that also have a high chance of growing in the future. DIVCON's methodology evaluates dividend health factors including profits, free cash flow and even bankruptcy risk, then assigns a rating between 1 and 5. Low ratings (1-2) are a sign of unstable dividends; high ratings (4-5) signal healthy dividends that likely will grow in the years ahead.
Here are seven "double threat" dividend stocks in the tech sector. They not only yield well better than the S&P 500's 1.8% average right now, but they also earn high scores from DIVCON for their dividend health.
Corning
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