Technology stocks aren’t just for the risk-taking growth-seekers out there. If you’re more conservative or want some income from your investments, tech stocks can still be a key contributor to your portfolio. With that in mind, let’s investigate three technology companies with excellent track records and strong fundamentals that can be great ideas to buy this month.
1. Verizon Communications
A small group of companies dominates the wireless phone industry in the United States, and Verizon Communications (NYSE:VZ) is one of them. The company operates a nationwide network, with nearly 30% of America’s cellular subscribers under its wing.
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Telecommunications is a unique business; it requires massive investments to build and maintain the towers and other infrastructure that make a wireless network run. These expensive investments create a moat from new competitors because few businesses in their right mind are likely to invest tens of billions of dollars in the hope that they might compete with the existing industry leaders.
Our cellphones are more critical to daily life than ever. Many people work, socialize, pay bills, or game on their cellphones. Consumers pay their phone bills just like they pay for heat, water, and electricity, making Verizon’s business very stable.
VZ Dividend Yield data by YCharts
Whatever profits Verizon has left over after funding its core business it gives its shareholders in the form of a dividend. The dividend yield is currently 4.7%, and the company has increased the payout for the past 17 years. The 4.7% yield is higher than it typically offers, and the payout ratio is decreasing, which shows that Verizon can easily afford to pay it. When a stock’s dividend is safer and pays more than in years past, it could be time to buy.
2. Roper Technologies
Most investors might not be familiar with Roper Technologies (NYSE:ROP). The company develops software and engineered solutions for industrial companies, so it doesn’t get much exposure to the everyday consumer. But Roper is a Dividend Aristocrat, meaning it’s increased its dividend for at least 25 years, 28 years to be exact.
Roper serves customers in industries like applications software, network, and communications, measurement and analytics, and process technologies. Roper strategically acquires specialized, profitable small businesses and integrates them into its broader business.
That can be a risk if it buys low-quality companies or do a lousy job integrating them, but Roper’s growth reflects its solid execution. Revenue and earnings per share have grown at an average of 8.7% and 10.4% per year, respectively, over the past decade.
ROP Dividend Yield data by YCharts
Roper isn’t going to be an outstanding income stock; its dividend yield is just 0.5%. However, the payout …….
Source: https://www.fool.com/investing/2021/12/21/3-dividend-paying-tech-stocks-to-buy-in-december/
