Discover 5 Inexpensive Tech Stocks with Great Dividends
Written on
Chapter 1: Overview of Affordable Tech Stocks
In the current market, several U.S. tech stocks are trading with forward price-to-earnings (P/E) ratios under 10, while also offering appealing dividend yields. These characteristics make them attractive choices for value investors on the lookout for bargains. The following five companies stand out:
- HP Inc (HPQ): This manufacturer of PCs and printers boasts a 2.7% dividend yield alongside a forward P/E ratio of 8.2, complemented by a robust 16.7% free cash flow yield.
- Avnet (AVT): An established electronics distributor, Avnet has maintained a 2.1% yield over the past eight years, with a forward P/E of 7.1.
- KT Corp (KT): This South Korean telecommunications giant offers a 5.2% yield, with a forward P/E of 6.6 and a consistent payout for six years.
- United Microelectronics (UMC): A Taiwanese semiconductor manufacturer with a projected yield of 4.4%, UMC has paid dividends for a decade and has a forward P/E of 7.9.
- Qualcomm (QCOM): As a leading U.S. telecom chip designer, Qualcomm provides a 2.2% yield with a forward P/E of 10.5.
Chapter 2: Spotlight on Individual Stocks
Section 2.1: HP Inc (HPQ)
HP Inc is recognized for its strong dividend yield of 2.7%. The company has a consistent share buyback program and offers an annual dividend of $1.00, which constitutes 23% of its earnings forecast of $4.26 per share for 2022. HPQ has achieved 11 consecutive years of dividend increases and boasts 32 years of uninterrupted dividend payments.
Analysts estimate that HPQ trades at just 8.2 times its forward earnings, making it a prime candidate for investment. Notably, Warren Buffett has recently acquired a significant 11.4% stake in HP, reinforcing its potential as a top tech stock with a P/E below 10 and a solid dividend.
Section 2.2: Avnet (AVT)
Avnet, an electronics distribution firm, offers an annual dividend of $1.04, resulting in a 2.1% yield. With earnings projected to reach $6.85 this year—well above the dividend amount—Avnet's stock trades at a forward P/E of just over 7.1. This valuation is influenced by rising chip prices and increased logistics revenues, positioning Avnet as a compelling option for investors seeking inexpensive tech stocks with reliable dividends.
Section 2.3: KT Corp (KT)
KT Corp operates as a telecommunications provider in South Korea, supplying broadband and various media services. The company recently announced an annual dividend of 75.47 cents, with a yield of approximately 5.36%. The stock's forward P/E is reported at 6.6 times, making it an attractive option for bargain hunters interested in tech investments.
Section 2.4: United Microelectronics (UMC)
United Microelectronics is a global semiconductor manufacturer that pays dividends annually. The previous year's dividend was set at 28.66 cents, resulting in a 3.4% yield. With an expected increase in earnings per share, the projected yield for this year could rise to 4.38%, alongside a forward P/E of only 7.9.
Section 2.5: Qualcomm (QCOM)
Qualcomm, a leader in mobile technology, boasts a substantial patent portfolio and impressive earnings potential. Analysts anticipate earnings per share of $12.59 for the year, which is a 47.4% increase compared to the previous year. The company’s dividend of $3 per share is less than a quarter of its projected earnings, yielding 2.2%. Qualcomm has consistently paid dividends for 18 years, further solidifying its position as a reliable tech stock with both a low P/E and a commendable dividend yield.
The first video highlights "5 Best Tech Stocks to Buy Now for 2020," detailing the potential of these investments in the current market landscape.
The second video discusses "Best Tech Stocks to Buy in 2024 (High Growth Stocks)," focusing on the opportunities available in the upcoming year.
Disclaimer: This content is for informational purposes only and should not be construed as financial advice. Always consult with a financial advisor before making investment decisions.