Investing

Tech Stocks Hit Hardest Since 2008 Collapse: 7 'Strong Buy' Sector Leaders for 2023 Pay Big Dividends

For over 10 years, technology stocks led the stock market higher. It seemed like all that investors needed to do was buy one or all of the FAANG stocks, the five of the best-performing tech-centric stocks of the past decade — Facebook (now Meta Platforms), Amazon, Apple, Netflix and Google (now Alphabet) — and huge gains were inevitable. However, all these mega-cap tech giants have hit the wall from a growth standpoint and are among many in the sector laying off employees.

After the absolute worst year for the tech sector since 2008, it may be time for investors to take a long look at companies in the sector that could outperform in 2023. While only suited for aggressive growth investors, the opportunity to add some alpha-generating tech stocks at bargain prices makes sense now, especially for those with some dry powder and cash to put to work.

We screened our 24/7 Wall St. technology research database looking for companies that are Buy rated, pay the biggest dividends, and have solid upside potential for 2023. Seven top companies look like outstanding ideas, and while they all are Buy rated, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Broadcom

This stock has been crushed, and while suitable only for more aggressive investors, Wall Street continues to like the company 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.

Top analysts and many on Wall Street are very positive on the company’s massive $10 billion share repurchase authorization through December of 2023, which represents about 4.2% of the company’s market cap.

Investors receive a 3.38% dividend. BofA Securities has a $680 price target on Broadcom stock. The consensus target is $646.31, and shares ended Thursday at $557.81 apiece.

Cisco

Investors who are more conservative may want to consider this mega-cap tech leader, which recently posted outstanding quarterly 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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