5 Tech Dividend Stocks With Impressive Dividend Trends
If you’re looking for sources of dividend income, there are several considerations to keep in mind, particularly if you are concerned about maintaining that yield. Dividend yields above 7% and payout ratios above 35% may be unsustainably large. Also, cash flow trends should be positive enough to indicate that the company can keep funding their dividend. We ran a screen on tech stocks paying dividend yields between 2-7% and payout ratios below 35% for those showing positive cash trends. Using levered free cash flow, or the cash flow available after paying interest on outstanding debt, we searched for those companies with high levered free cash flow relative to market cap. Not only does that indicate dividend sustainability, it also indicates a potentially undervalued opportunity.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from... Read more