HP (NYSE: HPQ) and IBM (NYSE: IBM) are both considered slow-growth stalwarts of the tech industry, and are generally owned for stability and income instead of growth. However, investors who are mainly interested in dividends should consider Big Blue a better income play than HP, for three reasons.
HP pays a forward yield of 3.5%. That equals $0.70 per share in annual dividends, but only 31% of its non-GAAP EPS forecast for 2020. It's raised that payout every year since its split with Hewlett Packard Enterprise (NYSE: HPE) in late 2015.
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