Dividend stocks are a great way to make money off of your investments. This is because while the price of a stock will vary over time, making you more money as it increases and less as it decreases, dividend stocks also pay regular dividends to investors. The most savvy investors use that dividend money to purchase more stocks, whether they are with the same company or not. If you want to make some money in the long run with stocks, dividend stocks are the way to go.
While many tech companies are known for their tendency to constantly change, there are three relatively cheap dividend stock in the tech world that investors should consider. There are many great stocks but these three have a bright future and you can make some good money in the market if you consider them.
Intel (NASDAQ: INTC)
Intel recently released quarter 1 earnings and it is clear that the company is making moves. First, the CEO, Brian Krzanich is working hard to bring Intel to the 21st century. That means he is doing a lot behind the scenes to get Intel into homes in other ways than the PC.
This is a great thing because the PC sales for the company during quarter 1 were down from the previous year. The company is now focusing on things like cloud based systems and other types of data systems. This will make the company a long term success over the years. The test of a company comes when they have to make adjustments to their first model and Intel is doing just that in the market.
On top of all that, Intel has posted record revenues with their IoT units and this continues to make up a big part of their revenue. With so much success already with these IoT units and plans for them to continue this trend, investing in Intel stock is a no brainer. On top of that, the price tag is relatively cheap and it is a great time to get in before it gets more expensive. The dividend yield on the stock is 3.25 percent and that makes it a great option for a dividend stock.
IBM (NYSE: IBM)
IBM recently released their earnings for quarter one as well and their PC related sales were down but the revenue from strategic imperatives was up. IBM is also working on IoT units but they are working on some other things as well. Some of these include big data and machine learning environments.
Of these new strategies, they each are estimated to earn $100 billion or more in the new opportunities they are opening for the company. While total revenue declined for the company, they are making big strides to turn that around and they are on pace to hit and exceed all of the goals that the company has outlined.
These alone are great reasons to invest in the stock but they are also relatively cheap. The price has been rising but they are still trading at 10 times future earnings. The stock also have a 3.6 percent dividend yield. Combined, this makes for one of the cheapest dividend yielding stocks on the market. Now is not the time to pass up on IBM stock.
Microsoft (NASDAQ)
If you have not been paying attention to the tech market, then you do not know how big the cloud portion is. However, Microsoft does know this and they are also going full steam ahead to get ahead in the market. Microsoft has a bit of an advantage though. Microsoft has focused on selling Saas, or software as a service, delivered on the cloud. This has resulted in an average of $9.5 billion in sales every year for the company.
In addition to that, managed cloud services are expected to reach $256 billion in revenue in two years’ time. Microsoft is well placed in the market to take advantage of this. They offer Office 365, the Azure cloud platform and Dynamics CRM already. If you look at just the price of the stock, you may not think it is cheap. However, it is expected to grow rapidly and if you want to get more of a return on your money, Microsoft stock is a great option. The stock also has a 2.6 percent dividend yield and you can earn money in the long run with them as well.
Regards,
Ethan Warrick
