Do Tech Stocks Pay High Dividends? These 2 Yielders Surpass Their Peers

Zinger Key Points
  • The communications services sector has the highest average dividend yield in the S&P 500 of 6.89%
  • Now may be an opportune time to bargain hunt for stocks that have been artificially dragged down with the market.
Do Tech Stocks Pay High Dividends? These 2 Yielders Surpass Their Peers

The iShares U.S. Telecommunications ETF IYZ is down roughly 35% year-to-date, while the S&P 500 is down approximately 22.6% year-to-date.

As the communications services sector has been dragged down far worse than other sectors in the S&P 500, now may be an opportune time to bargain hunt for stocks that have been artificially dragged down with the market.

For instance, Verizon Communications Inc. VZ and AT&T T have seen their yields soar, as the sector plummets. A key factor to consider is that during times of recession, consumers still need to pay phone and internet bills, which could lead to an eventual rebound.

The SPDR S&P 500 ETF Trust SPY has an average dividend yield of 1.64%, while the communications services sector has the highest average dividend yield in the S&P 500 of 6.89%

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Spok Holdings Inc. SPOK is offering a dividend yield of 16.23% or $1.25 per share annually, utilizing quarterly payments, with a track record of increasing its dividends once in the past year.

Spok Holdings is a global leader in critical communication solutions and continues to innovate to set the standard for the future of healthcare communication. Spok solutions are in more than 2,200 hospitals, including all of the adult and children’s hospitals named to U.S. News & World Report’s Best Hospitals Honor Roll, as its customers make more than 100 million messages each month.

In the second quarter, Spok saw its software bookings increase by 23% year-to-date, touting 32 deals worth over six figures each.

“We are very encouraged about our prospects for the second half of 2022 and beyond, and our focus remains on creating value for our stockholders by maximizing revenue and cash flow generation,” said Vincent D. Kelly, president and CEO of Spok Holdings.

Lumen Technologies Inc LUMN is offering a dividend yield of 14.47% or $1 per share annually, making quarterly payments, with an inconsistent track record of increasing its dividends.

Lumen Technologies is one of the U.S's largest telecommunications carriers serving global enterprises, with 450,000 route miles of fiber. This includes over 35,000 route miles of subsea fiber connecting Europe, Asia and Latin America.

"We improved our revenue trajectory and accelerated the number of Quantum Fiber locations enabled in the second quarter,” said Lumen President and CEO Jeff Storey.

Lumen completed the $2.7 billion divestiture of its Latin American business to Stonepeak on Aug. 1, and saw its net income decline in the second quarter of 2022 of $344 million, from the previous period's year of $506 million.

Photo: metamorworks via Shutterstock

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