Investing

Big Tech Stocks Lead the Rally, and These 7 Also Pay Dependable Dividends

After a dreadful start to 2022, the market has perked up some, after both the tech-heavy Nasdaq and the Russell 2000 had dipped into bear market land with 20%+ declines this year. Despite a witch’s brew of troubling events, not the least of which is the war in Ukraine, the risk-on crowd has held serve much of this month. Friday’s nonfarm job report for March is the big data point for investors, and while much of the quarterly index rebalancing took place during the quad witching options expiration earlier in March, a large amount remains in place this week. Plus, corporate buybacks have exploded.

With the S&P 500 up over 10% in past 11 trading days, something that has happened only twice since 2009, we could be nearing the end of this run. However, with the big tech stocks leading the way, we screened our 24/7 Wall St. research database for Buy-rated companies in the sector that also paid solid and dependable dividends. Seven stocks hit our screen, but 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 in 2021, and its stock is a top pick across Wall Street for dividend growth. 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 BofA analysts and many on Wall Street are very positive on the company’s massive $10 billion share repurchase authorization, which represents about 4.2% of the company’s market cap.

Broadcom stock investors receive a 2.59% dividend. The BofA Securities price target is a Wall Street high $780, while the consensus target is $685.32. The stock closed trading Tuesday at $641.47 a share.

Cisco

Investors who are more conservative may want to consider this mega-cap tech leader, which recently posted outstanding results. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.

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