2 Dividend-Paying Tech Stocks to Buy Right Now
When companies reach a level of cash generation where they can't find enough things in-house to invest in, they tend to do one of two things with it: Pay out a dividend to shareholders or buy back stock in the company. Over the last few decades, dividends have taken a back seat to share repurchases for many companies and it's become harder to find dividend-paying stocks. But adding dividend-paying stocks to an investment portfolio can have a tremendous impact on long-term returns. For example, since the 1940s, dividends have accounted for 40% of the stock market's total return to shareholders.
It literally pays to buy and hold great dividend stocks. Two gems in the tech sector that have very shareholder-friendly capital return programs are HP (NYSE: HPQ) (formerly Hewlett-Packard) and Texas Instruments (NASDAQ: TXN). These stocks pay above-average yields and are outperforming the market in 2022, which can be a perk of owning dividend stocks during bear markets. Let's find out a bit more about these two dividend-paying tech stocks.
HP has been getting some attention recently as Warren Buffett's Berkshire Hathaway disclosed a $3.8 billion stake in the personal computer brand for the first quarter. While HP faces headwinds in the near term with declining PC sales, and the shift toward mobile computing and digital document services, the company's computing and printing solutions are still heavily used by many individuals and businesses around the world. That means the company can produce stable revenue and profits every year, which are two key ingredients of a great dividend stock.
Source Fool.com
