This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 High-Yield Tech Stocks Poised to Boost Dividends

Nvidia

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Nvidia ( NVDA) has posted some strong performance this year for a chipmaker -- the firm's 21% gains year-to-date have outpaced the S&P by a respectable margin. Nvidia is a graphics chip designer whose products are found in devices ranging from PCs and mobile phones to gaming consoles. Right now, the firm pays out a 7.5-cent dividend for a 2% yield. While that's not exactly "high yield" in the historical sense, the low bar set by the Fed makes it look at whole lot more impressive.

>>5 New Trades From Renaissance Technologies

In recent years, processor makers like Intel have been working to add graphics processing abilities to their own chips. While that's harmed demand for dedicated graphics cards in laptops and lower end desktops, it's trickling up the food chain as capabilities improve. The trend towards higher-end graphics (such as 4K displays) in pro-level machines should help to limit that encroachment, as should Nvidia's increasing exposure to graphics hardware for supercomputers and consumer electronics such as the PlayStation 3.

Nvidia outsources all of its production, and that's a good thing. By keeping the capital-intense fixed costs of manufacturing off of NVDA's plate, the firm is able to keep its head above water when times get tough in exchange for slightly smaller margins. That's a tradeoff worth taking. With close to $3 billion in the bank and effectively no debt, NVDA sports a bargain valuation right now, and plenty of free cash to hike its dividend in the next quarter.

To see these stocks in action, check out the Dividend Hikes portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet . Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily , and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CA $29.53 0.07%
INTC $30.56 1.24%
MCHP $46.52 -0.25%
NVDA $20.42 0.10%
STX $48.15 1.22%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs