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.
24/7 Wall St.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.
Cisco provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.
Its cybersecurity products give clients the scope, scale and capabilities to keep up with the complexity and volume of threats. Putting security above everything helps corporations innovate while keeping their assets safe.
Shareholders receive a 2.68% dividend. J.P. Morgan’s $69 target price on Cisco Systems stock compares with the $63.91 consensus target and Tuesday’s close at $55.67.
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.
The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem, HPE Synergy and HPE ProLiant; storage solutions; and solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products, as well as HPE Superdome Flex, HPE Nonstop, HPE Integrity, HPE Moonshot, and HPE Edgeline products.
HPE provides mobility and Internet of Things solutions under the Aruba brand, which include Wi-Fi access points, switches, routers and sensors; cloud-based management, network management, network access control, analytics and assurance, and location services; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products.
The company also offers various leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from HPE and others. Further, the company invests in communications and media solutions, Hewlett Packard labs, and various business incubation projects.
Investors receive a 2.76% dividend. Raymond James has set a $21 price target. The consensus target for Hewlett Packard Enterprise stock is $18.16. The shares closed on Tuesday at $17.56.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
