With the market starting to look very heavy, and yields still where they were a year ago despite howls from pundits they were going higher, what are investors to do now?
Sell in May and go away always sounds like a good idea, and generally works, but that is not easy for most investors as the commission aspect always looms. One good idea is to look for some fallen angels that pay solid dividends.
One area that has been beaten down, especially over the past couple of months, is technology. With the smartphone cycle more of a second-half story, and the continued slowing of the personal computer market, the question is where is the opportunity for aggressive investors that would be glad to wait on a company if the dividend is solid?
We screened the Merrill Lynch research universe and found three tech stocks all yielding more than 4% that could have a solid turnaround on the way. All are rated Buy.
This is the printer and personal computer businesses of the old Hewlett-Packard. HP Inc. (NYSE: HPQ) provides products, technologies, software, solutions and services to individual consumers and small- and medium-sized businesses, as well as to the government, health and education sectors worldwide.
The company’s Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin client PCs, tablets, retail point-of-sale systems, calculators and other related accessories, software, support and services for the commercial and consumer markets.
The Printing segment provides consumer and commercial printer hardware, supplies, media, scanning device and software and services, as well as laserjet and enterprise, inkjet and printing, graphics, and software and web services.
HP investors receive a very solid 4.31% dividend. The Merrill Lynch price target for the stock is $15, and the Thomson/First Call consensus estimate is $13.55. The shares closed most recently at $11.55.