Technology is our future.
All aspects of our lives are becoming dominated by technology. Smartphones are practically an extra appendage at this point. The Internet is critical to almost all forms of work. And the Internet of Things will soon see everything from your refrigerator to your car connected to a network.
Investors have to be exposed to tech companies. But the cat is out of the bag, and a lot of tech stocks have gone on huge runs over the last few years.
However, there are a few tech stocks out there that are still reasonably priced. And they offer market-beating dividends that are growing faster than inflation.
Here are three technology dividend growth stocks can give your portfolio tech exposure and big, growing income.
The first stock I want to bring to your attention is Broadcom (AVGO).
This is a semiconductor giant that has a lot of exposure to 5G.
We did an analysis video back in early July noting how cheap this stock was at the time.
The stock was around $300/share back then. It’s now coming up on $500/share.
It’s obviously no longer the deal it once was. There’s no doubt about it.
However, it does still offer a market-beating yield of 3% right now.
And with a tech company this high quality and growing this fast, getting a market-beating dividend is no small feat. I don’t know of any other tech company that offers this much quality and growth while still offering this kind of yield.
The one thing the stock is now lacking, compared to when I analyzed it in the summer, is value.
But investors looking for an entry point should be paying attention to any pullbacks in this name.
The second stock I want to discuss is Cisco Systems (CSCO).
This networking equipment and software company remains underappreciated.
We put together a video analysis on Cisco also back in July of 2020.
The stock hasn’t moved up much since then. And that’s why there’s still an opportunity here.
Investors bemoan when a stock like Broadcom runs up too much and leaves them without the chance to buy, but then they stick their noses up at a stock that’s languished and is still cheap. You can’t have it both ways.
This stock remains below my intrinsic value estimate of $50/share. And it offers a market-beating yield of 3.1%.
Cisco isn’t growing as fast as some other tech companies out there, but the undemanding valuation and high yield more than offsets that.
The third stock is International Business Machines (IBM).
This is a legacy tech company that is just now pivoting to hybrid cloud, setting up an exciting future.
Our video analysis on IBM back in November showed why it might be worth upwards of $135/share.
With the stock trading hands for $120/share, there’s still some value here.
Meanwhile, the stock offers a market-smashing yield of 5.4%.
If you want big growth potential, you have to pay up, accept lofty expectations, and sacrifice yield. IBM gives you a cheap valuation, high yield, and low expectations.
These three tech dividend growth stocks all provide market-beating yields.
Best of all, there’s something here for every kind of investor. You can pay up for Broadcom’s high growth rate, or accept Cisco’s middle-of-the-road compromise, or take IBM’s big dividend and low valuation in lieu of faster growth.
— Jason Fieber
P.S. If you’d like access to my entire six-figure dividend growth stock portfolio, as well as stock trades I make with my own money, I’ve made all of that available exclusively through Patreon.