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Tech stocks have been the craze for some time, with their performance recently boosted by the artificial intelligence (AI) frenzy. The sector has jumped into the favorite pick for many, with outsized gains keeping investors happy.

Other than tech stocks, a fair portion of investors also love dividends, as they can provide a nice buffer against drawdowns in other positions and a passive income stream. In addition, dividend-paying companies are typically well-established, able to share a portion of their profits with shareholders without seeing a negative impact financially.

For those interested in exposure to each, several tech stocks, including Vertiv VRT, NetApp NTAP, and Roper Technologies ROP, reward their shareholders with quarterly payouts.

Let’s take a closer look at each.

Vertiv Shares Up 100% YTD

Vertiv shares have been considerably strong in 2024 thanks to robust quarterly results stemming from the AI bonanza, up more than 100% and outperforming the S&P 500 in a big way. The revisions trend for its current fiscal year has been considerably bullish, up 64% over the last year.

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Shares currently yield a modest 0.1% annually but still represent a prime selection for income-focused investors seeking AI exposure, particularly concerning the data center side.

NetApp Continues to Exceed Quarterly Expectations

NetApp shares have also been considerably strong year-to-date, gaining nearly 40% and boosted by better-than-expected quarterly results. The company has consistently posted positive beats as of late, exceeding our consensus EPS estimates by an average of 8% across its last four releases.

NTAP shares presently yield a solid 1.6% annually, nicely above the respective average of its Zacks Computer and Technology sector average. Dividend growth is also prevalent, with the company upping its payout three times over the last five years.

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Roper Technologies Delivers Consistent Dividend Hikes

ROP shares haven’t fared as well year-to-date but have jumped back into favor over the last month, gaining 6% compared to a +2% move from the S&P 500. The company’s quarterly consistency has been remarkable, exceeding both earnings and revenue expectations in seven consecutive quarters.

Sales growth has been robust, with ROP posting double-digit percentage year-over-year sales growth rates in each of its last six periods. Shares currently yield a modest 0.5% annually, undoubtedly on the lower end of the spectrum.

Still, the company’s 10.2% five-year annualized dividend growth rate reflects a notable commitment to increasingly rewarding shareholders.

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Bottom Line

Dividend-paying stocks aren’t always from ‘boring’ sectors, as many tech companies reward their shareholders with quarterly payouts.

And for those seeking tech exposure paired with an appetite for dividends, all three companies above - Vertiv VRT, NetApp NTAP, and Roper Technologies ROP – could be of interest.

In addition to passive income and tech exposure, all three presently sport a favorable Zacks Rank, reflecting optimism among analysts.

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NetApp, Inc. (NTAP) : Free Stock Analysis Report

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