Investing
5 Tech Stocks That You've Never Heard of Pay Big High-Yield Dividends
Published:
24/7 Wall St. Insights
Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
One solid way to generate total return gains is to find companies that are off the investing radar but have enormous upside potential. We screened our 24/7 Wall St. technology research universe, looking for companies that paid high-yield dividends that were virtually unknown.
Five companies emerged, and while one or two may ring a bell, they are likely not front and center with most growth and income investors. All make sense for those with a higher risk tolerance looking for attractive dividend stocks somewhat hidden away from the proverbial big boys in the technology space.
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Offering a big 6.84% dividend and trading at a very reasonable 11.6 times earnings estimates, this company could be a big winner. Autohome Inc. (NYSE: ATHM) operates as an online destination for automobile consumers in the People’s Republic of China.
The company delivers interactive content and tools to automobile consumers through its websites, autohome.com.cn, che168.com, and ttpai—Cn on PCs, mobile devices, mobile applications, and mini apps.
It provides media services, including automaker advertising services and regional marketing campaigns, and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services.
The company offers Autohome Mall, an online transaction platform, and a bidding platform for used automobiles. It also collects commissions for facilitating auto-financing and insurance product transactions on its platform.
Trading at just over 15 times estimated earnings and offering a solid 4.64% dividend, this could be a total return home run. ChipMOS Technologies Inc. (NASDAQ: IMOS) engages in the research, development, manufacture, and sale of high-integration and high-precision integrated circuits and related assembly and testing services in:
It operates through the Testing, Assembly, Testing, and Assembly for LCD, OLED, and Other Display Panel Driver Semiconductors, Bumping, and Other segments.
The company provides a range of back-end assembly and testing services, including:
Its semiconductors are used in personal computers, office automation consumer electronics, and communications equipment applications.
After trading sideways for two years, the shares look ready to explode higher and pay shareholders a dependable 4.91% dividend. Himax Technologies Inc. (NASDAQ: HIMX) is a fabless semiconductor company that provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States.
The company operates in two segments:
It offers display driver integrated circuits (ICs) and timing controllers that are used in:
The company also provides:
In addition, it provides:
The company markets its display drivers to panels, mobile device modules, and end-use product manufacturers.
Sporting a solid 4.45% dividend and trading at a cheap 6.3 times estimated 2024 earnings, this company looks ready to break out to new 52-week highs. Qifu Technology Inc. (NASDAQ: QIFU) and its subsidiaries operate a credit-tech platform under the 360 Jietiao brand in the People’s Republic of China.
The company provides credit-driven services that:
It offers SME owners e-commerce, enterprise, and invoice loans. It serves financial institutions, consumers, and small- and micro-enterprises.
This company is not just making copies, and to many, it is really just a verb, but it still delivers a sweet 8.83% dividend. Xerox Holdings Corp. (NASDAQ: XRX) operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and elsewhere.
The company operates through two segments:
The Print and Other segment designs, develops and sells document systems, solutions, services, and IT and software products and services.
The FITTLE segment offers financing solutions for direct channel customer purchases and lease financing to end-users.
It also offers workplace solutions comprising:
In addition, Xerox provides:
Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and invests in startups.
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