As hard to believe as it is, the summer of 2021 is soon to officially be in the rearview mirror and the third quarter is about to end. The question going forward is what path makes sense for growth total return investors? Investors have enjoyed seven consecutive months of gains, the stock market is massively overbought, not having a 5% correction in almost a year. Despite the lousy jobs report last week, the Federal Reserve is going to begin the quantitative easing process, probably in November.
Investors with a longer-term outlook and a somewhat higher degree of risk tolerance that focuses on total return may have a path to success, even with the potential for a hefty sell-off. Solid and successful technology companies with in-demand products that pay meaningful and dependable dividends are a solid idea for the fourth quarter and for 2022.
We screened our 24/7 Wall St. research database looking for technology companies with an in-demand set of products or services and that pay a reliable dividend. Five of them stood out, and all are outstanding ideas for investors with a higher degree of risk tolerance and a long-term investment horizon.
Many of these companies have dividend reinvestment plans, with which you can reinvest the dividends to buy more shares. That makes a ton of sense, especially given the potential for a hefty correction.
While these stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Broadcom
The company reported solid earnings, and the stock is a member of the BofA Securities US 1 list of top stock picks. Broadcom Inc. (NASDAQ: AVGO) has an extensive semiconductor product portfolio that addresses applications within the wired infrastructure, wireless communications, enterprise storage and industrial end markets.
Applications for Broadcom’s products in its end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, servers and storage, factory automation, power generation and alternative energy systems and displays.
The dividend yield is 2.90%. BofA Securities has a huge $580 price objective on Broadcom stock, while the consensus price target is $530.62. Shares closed trading on Friday at $497.68.
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