5 Dividend-Paying Technology Stocks Could Be Huge Q4 Winners
As has been the case for years, the technology sector continues to provide much of the growth in the United States and around the world, but what if you want to own technology stocks but also need income? The 10-year Treasury bond has sold off some recently but still yields a puny 1.61%, and the S&P 500 yield remains near 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 technology 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 the fourth quarter, 2022 and beyond. We found five that look like outstanding ideas now, and while all five are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decisions.
While perhaps off the radar, this stock offers investors massive total return potential. ASE Technology Holding Co. Ltd. ( NYSE: ASX ) provides a range of semiconductor packaging and testing, as well as electronic manufacturing services, in the United States, Asia, Europe and elsewhere.
The company offers packaging services, including flip-chip ball grid array (BGA), flip-chip chip-scale package (CSP), advanced chip-scale packages, quad flat packages, low-profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs and 3D chip packages. It offers stacked die solutions in various package types and copper and silver wire bonding solutions.
ASE also provides advanced packages, such as flip-chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip-chip package in package and package on package (POP); advanced single-sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer.
In addition, the company offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, it provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services.
Shareholders receive a 3.08% dividend. BofA Securities has an $11 price target on ASE Technology stock. The consensus target is $11.43, and the last trade for Tuesday was reported at $7.06 a share.
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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 3.12% dividend. The Wells Fargo price target is $20, and the consensus target on Hewlett Packard Enterprise is $17.40. The shares were last seen on Tuesday at $15.37.
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This old-school tech giant still offers investors a very solid entry point. International Business Machines Corp. ( NYSE: IBM ) is a leading provider of enterprise solutions, offering a broad portfolio of information technology (IT) hardware, business and IT services, and a full suite of software solutions.
The company integrates its hardware products with its software and services offerings in order to provide high-value solutions. Analysts have cited the company’s potential in the public cloud as a reason for their positive outlook going forward.
The company posted a solid second quarter, and the third quarter could be even better. The cloud proved to be big in the earnings reports, as did Red Hat, the software giant the firm bought in 2019. Red Hat’s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM’s innovation and industry expertise and sales leadership in more than 175 countries.
Investors receive a 4.62% dividend. BofA Securities reiterated its Buy rating after the aforementioned stellar second-quarter earnings report and raised the price target to $176. That compares with the $151.71 consensus target and Tuesday’s closing print for IBM stock of $141.98.
This is another familiar name that could offer among the best total return potential. Juniper Networks Inc. ( NYSE: JNPR ) designs, develops and sells network products and services worldwide. The company offers various routing products, such as ACX series universal access routers to deploy new high-bandwidth services; MX series Ethernet routers that function as a universal edge platform; PTX series packet transport routers; and NorthStar controllers.
Juniper Networks also provides switching products, including EX series Ethernet switches to address the access, aggregation and core layer switching requirements of micro branch, branch office, and campus environments; QFX series of core, spine and top-of-rack data center switches; and Juniper access points, which provide wireless access and performance.
In addition, the company offers security products including SRX series services gateways for the data center; Branch SRX family provides an integrated firewall and next-generation firewall; virtual firewall that delivers various features of physical firewalls; and advanced malware protection, a cloud-based service and Juniper ATP.
Investors in Juniper Networks stock receive a 2.83% dividend. Wolfe Research has an Outperform rating, and a $34 price target. The consensus target is posted at $27.53. The shares were last seen Tuesday at $28.28.
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This disk drive giant is hitting on all cylinders and looks reasonable at current trading levels. Seagate Technology Holdings PLC ( NASDAQ: STX ) provides data storage technology and solutions in Singapore, the United States, the Netherlands and elsewhere.
The company offers hard disk and solid state drives, including serial advanced technology attachment, serial attached SCSI and non-volatile memory express products; solid state hybrid drives; and storage subsystems. Its products are used in enterprise servers and storage systems and edge compute and non-compute applications.
Seagate also provides an enterprise data solutions portfolio, comprising storage subsystems and mass capacity optimized private cloud storage solutions for enterprises, cloud service providers and scale-out storage servers and original equipment manufacturers. In addition, it offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 16 terabytes.
Shareholders enjoy a 3.30% dividend. UBS has set a $105 price target. The consensus target for Seagate Technology stock is lower at $102.90. Tuesday's last trade hit the tape at $81.12.
These five top technology companies pay solid and dependable dividends. Given the technology run, and the very rich and overbought market, it may make sense to scale buy into a position in one or more of these top companies, especially with third-quarter tech earnings right around the corner.