7 Tech Stocks to Buy With Great Dividends
https://money.usnews.com/investing/dividends/slideshows/tech-stocks-to-buy-with-great-dividendsTech stocks to buy with great dividends.
Broadcom (AVGO)
IBM Corp. (IBM)
Lenovo Group (LNVGY)
Nokia (NOK)
Silicon Motion Technology (SIMO)
Taiwan Semiconductor Manufacturing Co. (TSM)
Western Digital Corp. (WDC)
-the technology sector has been the top-performing market sector during the bull market by a wide margin. Unfortunately for dividend investors, many of the top-performing tech stocks pay small dividends or no dividends at all.
Silicon Valley is not known for its dividend payouts, but there are plenty of popular tech stocks that reward their shareholders with high yields. Here are seven of the best tech stocks to buy with dividend yields of at least 2.8%.
1. Broadcom (ticker: AVGO). Broadcom is one of the most profitable companies within the semiconductor group. Broadcom may not put up the same growth numbers as high-flying tech stocks like Netflix (NFLX) or Amazon.com (AMZN), but it reported a respectable 8.6% revenue growth in the first quarter.
Bank of America analyst Vivek Arya says Broadcom has diversified market exposure to some of the highest-growth secular trends in tech, including mobile devices, cloud data centers and enterprise storage. Broadcom has a 3.3% dividend yield. Bank of America has a “buy” rating and $325 price target for AVGO stock.
2. IBM Corp. (IBM). Patient investors willing to make a bet that IBM can finally turn the corner in modernizing its business after years of struggles and underperformance will get paid a 4.5% dividend while they wait.
Analyst Wamsi Mohan says IBM is one of the best defensive stocks in the tech sector, given its recurring revenue, cost-cutting opportunities, stable margins and robust balance sheet. Mohan says IBM will also eventually gain share in the high-growth cloud and artificial intelligence markets. Bank of America has a “buy” rating and $165 price target for IBM stock. – Wayne Duggan-
