3 Top High-Yield Tech Stocks
Dividends are a great way to offset investment portfolio volatility and boost total return, but technology usually isn't the place to find the best payouts. Nevertheless, as certain techs age and business growth slows down, many stocks in the sector have become solid picks while still offering plenty of long-term and steady expansion potential. Three that fit the bill are Texas Instruments (NASDAQ: TXN), Broadcom (NASDAQ: AVGO), and Accenture (NYSE: ACN).
Texas Instruments is an efficient cash cow for shareholders. The diversified chipmaker -- which focuses on industrial markets like autos and healthcare and consumer electronics -- has been stuck in the semiconductor slump for over a year now along with its peers. Owners of the stock have barely noticed as shares have continued to chug higher and currently trade near all-time highs.
Texas Instruments' secret is its focus on efficient operations and aggressive return of free cash flow (basic profits after cash operating expense and capital expenditures are paid). Revenues in 2019 fell 9%, but earnings per share only fell 6% -- thanks in large part to share buybacks. Texas Instruments boasts having nearly halved its outstanding share count in the last decade-and-a-half, including a nearly 4% reduction in the number of shares during 2019. As a reminder, share repurchases boost earnings per share, effectively creating a non-cash dividend payout to owners of a stock.
Source Fool.com
