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- The Nasdaq is up a stunning 14.5% this year after a massive 43% gain in 2023.
- Nasdaq dividend stocks are still reasonably priced, including Cisco Systems Inc. ( NASDAQ: CSCO ).
- Unloved biotech Gilead Sciences Inc. ( NASDAQ: GILD ) could explode higher.
- Starbucks Corp. ( NASDAQ: SBUX ) trades near a 52-week low and offers huge total return prospects.
While investors who have held Nasdaq stocks over the past year and a half have seen significant gains, it is important to note that a substantial correction is overdue. Additionally, the artificial intelligence wave, which has been on a massive run since the revelation of Microsoft Corp.'s ( NASDAQ: MSFT) investment in ChatGPT, may also need to pause for a breather.
We screened the Nasdaq, looking for well-known stocks that investors seem to be avoiding despite their huge industry dominance and total return potential. At 247 Wall St., we consistently emphasize the possibility of total return to our readers, as it is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return is the collective increase in a stock's value plus dividends.
Let's take a closer look at the concept of total return . Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend. Understanding this calculation is critical to making informed investment decisions.
Investors looking for a ton of value, and a place to put some of the gains from the huge technology move should consider these three top Nasdaq stocks to buy in June.
Cisco Systems
Cisco develops, manufactures, and sells networking hardware, software, telecommunications equipment and other high-technology services and products.
This legacy technology giant trades at a 52-week low and offers investors a rich 3.45% dividend. The company designs, manufactures, and sells internet-protocol-based networking and other products related to the communications and information technology industry in:
- the Americas
- Europe
- the Middle East
- Africa
- the Asia Pacific
- Japan
- China
The company also offers a switching portfolio that encompasses campus switching as well as:
- Data center switching
- Enterprise routing
- Portfolio interconnects public and private wireline and mobile networks
- Delivering highly secure and reliable connectivity to campus, data center, and branch networks
- Wireless products include wireless access points and controllers
- Compute portfolio including the Cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization
In addition, it provides internet for the future product consisting of:
- Routed optical networking
- 5G, silicon, and optics solutions
- Collaboration products, such as meetings, collaboration devices,
- Calling, contact center, and communication platform as a service
- End-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust
- Optimized application experiences products, including full-stack observability and network assurance
Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers.
Given the company's data center sales potential and 5g exposure, the opportunities are solid, and the big dividend will pay patient investors looking for a turnaround.
Gilead Sciences
Gilead Sciences is a research-based biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines.
This biotech giant is totally overlooked by many across Wall Street while paying a strong and dependable 4.69% dividend.
Gilead Sciences is a biopharmaceutical company, that discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally.
The company provides:
- Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS
- Veklury, an injection for intravenous use, for the treatment of COVID-19
- Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis
It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology:
- Letairis, an oral formulation for the treatment of pulmonary arterial hypertension
- AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections
The company has collaboration agreements with:
- Arcus Biosciences
- Merck Sharp & Dohme
- Pionyr Immunotherapeutics
- Tizona Therapeutics
- Galapagos
- Janssen Sciences Ireland
- Japan Tobacco
- Dragonfly Therapeutics
- Arcellx
- Everest Medicines
- Merck & Co, Inc. ( NYSE: MRK )
- Tentarix Biotherapeutics
- Assembly Biosciences
It also has a research collaboration, option, and license agreement with Merus for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies.
Starbucks
Starbucks is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington.
If any company has sold a product to almost everybody across the globe it is this one, and investors are paid a very solid 2.90% dividend while they wait for their order. Starbucks Corporation together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide.
The company operates through three segments:
- North America
- International
- Channel Development
Its stores offer coffee and tea beverages:
- Roasted whole beans and ground coffees
- Single serve products
- Ready-to-drink beverages
- Various food products, such as pastries, breakfast sandwiches, and lunch items.
The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. Starbucks offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands.
Former CEO Howard Schultz has been a vocal critic recently after the company's disappointing earnings report, saying that current leadership needs to address systemic problems in the company and get back to what calls the brand's core values. In addition, complaints numbering in the hundreds have been lodged with the National Labor Relations Board, citing the dismissal of union advocates, conducting employee surveillance, and closing stores during labor drives.
While the problems are many, Starbucks has millions of loyal customers, and the right moves at the company could reignite earnings and drive the shares higher. In the meantime, investors can sip a latte and reel in their dividends while waiting for the turnaround.
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