Is Seagate Technology a Solid Dividend Stock?
Seagate Technology (NASDAQ: STX) might initially look appealing to income investors, since it trades at just nine times forward earnings and pays a forward yield of 5.5%. However, the hard drive maker's stock also tumbled nearly 20% over the past 12 months and canceled out its dividend gains. Let's see why Seagate slipped, and whether or not it's still a dependable dividend play.
Seagate is the second largest maker of traditional platter-based HDDs (hard disk drives) in the world after Western Digital (NASDAQ: WDC). HDDs are widely used in PCs and data centers worldwide, but they're gradually being replaced by SSDs (solid state drives), which store data on flash memory (NAND) chips instead of platters.
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