As has been the case for years, the technology sector continues to provide much of the growth in the U.S. markets and around the world. What if investors want to own technology stocks but also need income? Even with the spike in U.S. Treasury yields recently the 30-year bond yield is just 2.09%, and the S&P 500 yield is at its lowest in 20 years. So what are investors with a higher risk tolerance that need income and growth to do?
One great idea is to look at the tech stocks that also pay solid and dependable dividends. We screened our 24/7 Wall St. research universe looking for well-known technology companies that pay big dividends and have solid growth prospects for the rest of 2021 and beyond. We found five that look like outstanding ideas now. All five are rated Buy at top Wall Street firms, though it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decisions.
This company reported solid second-quarter earnings and is also a member of the BofA Securities US 1 list of top stocks. 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.
Broadcom just announced that it has agreed to sell its BlazeMeter Continuous Testing platform to Perforce Software. Perforce Software said in a statement this week that the deal will boost its enterprise application quality portfolio.
The dividend yield is 2.97%. BofA Securities has a $580 price objective Broadcom stock, while the Wall Street consensus target is lower at $530.62. Shares closed trading on Thursday at $484.93 apiece.
Hewlett Packard Enterprise
This spin-off from a Silicon Valley legend holds solid upside potential. Hewlett Packard Enterprise Co. (NYSE: HPE) provides solutions that allow customers to capture, analyze and act upon data seamlessly.
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