Below we shared the list of 5 best technology stocks that pay dividends. For our comprehensive coverage and a more expanded list please see 10 Best Technology Stocks That Pay Dividends.
5. Expedia Group Inc (NASDAQ: EXPE)
Hedge Funds: 64
Total Hedge Fund Holdings: $3.78 billion
Dividend Yield: 1.07%
Expedia is a world-wide travel fare aggregator with popular brands such as Trivago on its roster. If you’re thinking that the COVID-19 pandemic hasn’t been kind towards any travel oriented company, you’re right but Expedia is expected to bounce back quicker than other travel companies.
D.A Davidson’s Tom White recently advised that investors buy EXPE stock. Here’s why he thinks this stock can turn a profit:
“We’re generally positive on both Booking (NASDAQ: BKNG) and Expedia (NASDAQ: EXPE). We’ve got a neutral rating but they are both great companies.”
Daniel Loeb’s Third Point capitalized on the stock’s low point. Third Point bought over 1.62 million shares of EXPE during Q3 of 2020, hoping to turn a profit on the travel platform’s depressed stock price. Recent vaccine development and vaccination effort has sent EXPE and similar stocks soaring by a significant percentage.
4. Intel Corporation (NASDAQ: INTC)
Hedge Funds: 66
Total Hedge Fund Holdings: $4.34 billion
Dividend Yield: 2.45%
If you look around the device you’re reading this on, you might find an Intel label. The company has its components and software running a huge portion of the PC and data center market. Even so, Intel has been having a rocky year which ended with a letter from Third Point, a fund that reportedly holds around $1 billion in stakes in Intel. The letter addressed issues in Intel’s loss of positions in the aforementioned markets to its competition. The fund also demands that Intel should hire a financial advisor who will help it strip bad investments, of which apparently there have been plenty in recent years.
At Q3’s end, a total of 66 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from the second quarter of 2020. Still, Third Point’s recommendations were immediately followed by a bump upwards in the company’s stock.
3. QUALCOMM, Inc. (NASDAQ: QCOM)
Hedge Funds: 87
Total Hedge Fund Holdings: $2.58 billion
Dividend Yield: 1.61%
Qualcomm is another USA-based tech giant that has been around to see its technology used as a basis for developing the 3G standard. Most of the company’s big ventures are oriented towards wireless communication and its applications in enterprise, end consumers and even the military. Qualcomm has recorded a wonderful year in 2020, rising 49% and beating market predictions by a long shot. This landed QCOM a spot on the list of 30 most popular stocks among hedge funds for 2020’s Q3.
According to the smart money, Qualcomm has a great potential for growth in the following years. here’s what Amana Mutual Funds says about Qualcomm Inc in an investment letter from Q2 2019:
“We believe the new decade will be a strong one for semiconductor stocks, and as the world’s leading foundry, Taiwan Semiconductor will certainly benefit. Qualcomm faced a raft of challenges over the past few years but commands an unassailable lead in 5G intellectual property.”
Comments made by Del Principe O’Brien Financial Advisors about Qualcomm Inc (NASDAQ:QCOM) stock in their Q2 2019 investor letter reinforce that:
“When Qualcomm was trading in the low $50s, we bought every share we could. Qualcomm stock rose to around $70 when Broadcom was set to acquire the company, but ultimately the deal did not go through. In April of this year, Qualcomm ended a lengthy and complicated legal battle with Apple over the licensing of Qualcomm’s chip technology in Apple’s mobile devices, including its iPhones. The settlement included a payout from Apple to Qualcomm rumored to be around $6 billion, as well as a six-year licensing agreement and a supply agreement guaranteeing that the chipmaker continue to provide its products to the largest company in the world. With this settlement and the expected increase in product shipments, Qualcomm anticipates an incremental earnings per share of $2. As Qualcomm shareholders, we were able to realize a gain of 54% over a short period of time.”
At the end of the third quarter of 2020, a total of 87 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18% from one quarter earlier. By comparison, 60 hedge funds held shares or bullish call options in QCOM at the same time in 2019.
2. Apple Inc (NASDAQ: AAPL)
Hedge Funds: 134
Total Hedge Fund Holdings: $127.3 billion
Dividend Yield: 0.61%
With their constant innovation output, Apple might seem like a company with endless momentum. And indeed, on the financial side of things, the company hasn’t lost its edge. In the Q3 2020 Investor Letter, Alger Spectra Fund Fund highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here’s what they had to say:
“Apple is a leading technology provider in telecommunications, computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. This tight engagement is facilitating significant growth in high-margin services like streaming music. apps. and Apple Pay. Apple’s continued development of high-margin services and earnings streams for wearable devices as well as the potential contribution of 5G phones to the company’s growth supported the performance of Apple shares.”
The company has been enjoying an increase in hedge fund interest, seeing 134 funds holding $127.30 billion worth of stock, up from 128 funds with stakes worth $106 billion a quarter earlier.
1. Microsoft Corporation (NASDAQ: MSFT)
Hedge Funds: 234
Total Hedge Fund Holdings: $42.1 billion
Dividend Yield: 0.93 %
The world’s largest software company recently landed a spot in billionaire David Siegel’s top 5 stock picks and for a good reason. Hedge funds like that Microsoft has been able to successfully diversify and better monetize its portfolio of products and services in recent years while pushing them onto the cloud, keeping up with modern tendencies and business demands. Daniel Loeb’s Third Point also bough 1.1 million shares in the company after previously selling out its 660 000 shares holdings
In a Q4 2020 Investor Letter, Wedgewood Partners highlighted a few stocks and Microsoft was also mentioned in the letter. Here’s what they had to say:
“Microsoft continued to generate solid double-digit top-line, and operating earnings growth. The Company’s all-encompassing portfolio of “hybrid” cloud solutions is compelling for customers as IT organizations vacillate between on-premises and off-premises (and then likely on-premises again). For example, Microsoft 365 has added an array of features to make remote work easier, yet, as customer applications grow in compute intensity, those customers’ on-premises and edge computing topologies retain or grow in importance. Microsoft’s strategic pivot to be more customer-friendly and collaborative will sustain its growth and returns for several more years so we are happy with our position.”
Please also see 10 Best Dividend Paying Stocks Under $50 and Top 15 Dividend Stocks With Upside Potential
