3 Dividend Tech Stocks Under $10 with Yields Over 2%

The tech-heavy Nasdaq Composite snapped a four-day losing streaks to gain 1.7% on Tuesday. The recovery followed an upbeat assessment of the US economic recovery by Federal Reserve leaders. However, the economic fallout and the upcoming election have exacerbated the inevitable market volatility, making investors apprehensive about their portfolios…

During unpredictable movements in the markets, dividend income provides a cushion against capital losses. Hence, high dividend-paying tech stocks appear a solid investment now. That’s due to fast growing areas such as 5G and cloud computing that should keep tech stocks thriving.

Hewlett Packard Enterprise Company (HPE – Get Rating), United Microelectronics Corporation (UMC – Get Rating), and ASE Technology Holding Co., Ltd. (ASX – Get Rating) are low-priced tech stocks that could provide a steady source of dividend income. These three stocks also hold immense price appreciation potential.

Hewlett Packard Enterprise Company (HPE – Get Rating)

HPE is a global edge-to-cloud Platform-as-a-Service (PaaS) company. It is transforming businesses by helping them connect, protect, analyze, and act on their data and applications from edge to cloud. It operates as a subsidiary of Hewlett-Packard Company.

HPE has lost 39% year-to-date to close yesterday’s trading session at $9.31. However, the stock has recovered nearly 8% since its March low.

HPE pays an annual dividend of $0.48, which translates into a yield of 5.20%. The company has a four-year average dividend yield of 2.43%. Over the past three years, the average dividend per share growth rate for HPE was 38.5% per year. The company pays quarterly dividends and has been consistently increasing its dividend each year. The most recent payout was a cash dividend of $0.12, payable in October 2020.

HPE witnessed strong execution and sequential growth in its fiscal third quarter that ended in July 2020. The company generated free cash flow of $924 million, improving 43% year-over-year. It also reported $1.47 billion as cash flow from operations, a 23% increase compared to the year-ago quarter. The company returned $154 million back to its shareholders in the form of dividends.

HPE also delivered a top-line of $6.8 billion, increasing 13% year-over-year. The company gained momentum in key areas of differentiation and accelerated its as-a-service pivot with strong Annualized revenue run-rate (ARR) growth and a record number of HPE GreenLake services orders. ARR for the quarter came in at $528 million, up 11% from the prior-year period.

The company reported an EPS of $0.01 for the quarter, significantly improving from the year-ago loss of $0.02. HPE has recently completed the acquisition of Silver Peak, an SD-WAN (Software-Defined Wide Area Network) leader. The deal creates a comprehensive networking portfolio to accelerate customers’ edge-to-cloud transformation. The street expects EPS to grow 11.4% next year. As per our POWR Ratings, HPE has a grade a “B” in Industry Rank.

United Microelectronics Corporation (UMC – Get Rating)

UMC operates as a semiconductor wafer foundry in Taiwan, United States, and internationally. It provides circuit design, mask tooling, wafer fabrication, and assembly and testing services for applications to serve every major sector of the electronics industry. The company functions through two segments – Wafer Fabrication and New Business.

UMC closed yesterday’s trading session at $4.29, gaining more than…

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