In this article, we discuss 10 technology dividend stocks with over 4% yield. If you want to skip our detailed analysis of these stocks, go directly to 5 Technology Dividend Stocks with Over 4% Yield.
As a result of the COVID-19 pandemic, the world shifted towards a digital age that is here to stay in 2022 and beyond. Online education, remote work, and virtual meetings have familiarized most people with technology, which means that the shift to more advanced tech such as quantum computing, nanotechnology, multicore, photonics, machine learning, computational biology and bioinformatics, and medical robotics will make for an easier transition.
The software and cloud services industry is profiting from workflow modernization. Public cloud is forecasted to continue its solid growth since it offers increased efficiency for a continuously evolving workforce that becomes more decentralized every day. As the shift from on-premises to online becomes the norm, organizations will focus on new tech-driven business strategies, with consequent developments in data management, fintech, and cybersecurity.
According to Forrester, tech budgets in the United States will expand by 7.4% in 2021 and 6.7% in 2022. Tech outsourcing, consultancy services, computer and communications equipment, and software will see increased demand, with spending growth accelerating to almost 10% in 2021 and just over 11% in 2022.
The technology sector, despite being one of the leading components of the S&P 500 Index, does not pay attractive dividends. Many dividend investors do not prefer technology dividend stocks due to their high volatility. Most tech companies prefer to reinvest cash into their businesses rather than paying dividends.
Most tech investors invest in companies like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Intel Corporation (NASDAQ:INTC) for long-term stock price gains. However, in this article, we will mention some of the tech stocks with decent dividend yields.
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Our Methodology
We screened for technology stocks offering a dividend yield of more than 4%, ensuring that the selected companies have long term growth catalysts and strong fundamentals. These stocks are also popular among the 867 hedge funds tracked by Insider Monkey.
We have ranked the companies in the ascending order, according to the respective dividend yields.
Technology Dividend Stocks with Over 4% Yield
10. Micro Focus International plc (NYSE:MFGP)
Dividend Yield as of February 11: 4.87%
Number of Hedge Fund Holders: 5
Micro Focus International plc (NYSE:MFGP) is a multinational software company headquartered in Newbury, England, offering enterprise application integration, management software, and IT consulting.
According to Insider Monkey’s Q3 data, 5 hedge funds were long Micro Focus International plc (NYSE:MFGP), holding stakes worth $9.79 million, as compared to 7 funds in the preceding quarter, with a total stake value of $13.4 million.
Micro Focus International plc (NYSE:MFGP) paid a per share dividend of $0.088 or 6.42 pence on August 6, and offers a dividend yield of 4.87% as of February 11, making it one of the best tech stocks to purchase if income investors are looking to diversify their portfolio.
Investec analyst Julian Yates upgraded Micro Focus International plc (NYSE:MFGP) to Hold from Sell with a £400 price target on November 18.
VIEX Capital Advisors, the largest Micro Focus International plc (NYSE:MFGP) stakeholder, increased its stake in the company by 1441% in the third quarter, owning over 1 million shares worth $5.78 million.
Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Intel Corporation (NASDAQ:INTC), Micro Focus International plc (NYSE:MFGP) is a notable technology dividend stock to purchase.
9. International Business Machines Corporation (NYSE:IBM)
Dividend Yield as of February 11: 4.94%
Number of Hedge Fund Holders: 41
International Business Machines Corporation (NYSE:IBM) is a multinational technology corporation that operates in more than 171 countries, offering multiple products and services like computer hardware and software, hosting services, IT consultancy, nanotechnology, and cloud services, among others.
International Business Machines Corporation (NYSE:IBM) offers a dividend yield of 4.94%, making it one of the best technology dividend stocks to buy now. On October 20, International Business Machines Corporation (NYSE:IBM) reported its Q3 results. The company announced earnings per share of $2.52, beating estimates by $0.01.
Credit Suisse analyst Sami Badri assumed coverage of International Business Machines Corporation (NYSE:IBM) on December 7 with an Outperform rating and an unchanged price target of $164.29.
According to Insider Monkey’s Q3 data, 41 hedge funds were long International Business Machines Corporation (NYSE:IBM), with total stakes equaling $1.40 billion. Arrowstreet Capital is one of the leading company stakeholders, with 2.30 million shares worth $320.77 million.
8. Iron Mountain Incorporated (NYSE:IRM)
Dividend Yield as of February 11: 5.57%
Number of Hedge Fund Holders: 21
Iron Mountain Incorporated (NYSE:IRM) is an enterprise information management company from Massachusetts, offering services including information storage, information destruction, data backup, and data recovery to clients across 58 countries.
Iron Mountain Incorporated (NYSE:IRM) announced earnings for the third quarter on November 4, posting an EPS of $0.40, in line with analysts’ consensus estimates. The revenue gained 9.02% from the preceding year quarter, totaling $1.13 billion, but missed estimates by $143,170.
Iron Mountain announced on December 10 that it has entered into a definitive agreement to acquire ITRenew, a data center lifecycle management solutions company for $725 million in cash, and 20% of the outstanding shares will be acquired within three years of closing for a minimum enterprise value of $925 million. Following the finalization of the transaction in Q1 2021, ITRenew will create the platform for Iron Mountain Incorporated (NYSE:IRM)’s Global IT Asset Lifecycle Management business.
A total of 21 hedge funds in the Q3 database of Insider Monkey were long Iron Mountain Incorporated (NYSE:IRM), down from 25 funds in the preceding quarter. Adage Capital Management is the leading company stakeholder, with 300,352 shares worth over $13 million.
7. Autoscope Technologies Corporation (NASDAQ:AATC)
Dividend Yield as of February 11: 6.51%
Number of Hedge Fund Holders: 2
Autoscope Technologies Corporation (NASDAQ:AATC), via its primary subsidiary named Image Sensing Systems, produces technology products for advanced traffic management systems, traffic data collection applications, and related markets. The company’s aim is to enhance road safety by offering reliable data through cutting-edge technologies, applications, and solutions.
Autoscope Technologies Corporation (NASDAQ:AATC) announced its Q3 results on November 15. The company posted GAAP earnings per share of $0.11, beating estimates by $0.02. The $3.27 million revenue was down 12.8% year-over-year.
A $0.12 per share quarterly dividend was announced by Autoscope Technologies Corporation (NASDAQ:AATC) on November 15, which was paid on November 25 to shareholders of record on November 22. With a yield of 6.51%, Autoscope Technologies Corporation (NASDAQ:AATC) is one of the best technology dividend stocks to hold.
According to Insider Monkey’s Q3 data, 2 hedge funds reported owning stakes in Autoscope Technologies Corporation (NASDAQ:AATC), worth almost $2.5 million. This is compared to the same number of funds in the preceding quarter, with total stakes valued at $2.41 million.
6. BlackRock Science and Technology Trust (NYSE:BST)
Dividend Yield as of February 11: 6.81%
Number of Hedge Fund Holders: 2
BlackRock Science and Technology Trust (NYSE:BST) is one of the high yielding tech stocks to look out for, offering a 6.81% dividend yield as of February 11. BlackRock Science and Technology Trust (NYSE:BST) is a close-ended investment management trust, with around 80% of its investments focused on the US and international technology companies. Securities are selected from the software, information technology services, entertainment, healthcare technology, telecommunications, banking, and communications sectors.
BlackRock Science & Technology Trust (NYSE:BST) declared a $0.25 per share monthly dividend on December 15, payable on December 31 to shareholders of record on December 16. The dividend was increased by BlackRock Science & Technology Trust (NYSE:BST) in October by 10.6%, from $0.226 per share to $0.25 per share.
Insider Monkey’s database suggests that 2 hedge funds were bullish on BlackRock Science & Technology Trust (NYSE:BST) in the third quarter, holding stakes worth $10.2 million.
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Disclosure: None. 10 Technology Dividend Stocks with Over 4% Yield is originally published on Insider Monkey.
