The biggest loser coming out of the election was the technology sector, and we have written at length about the worries over trade and some of the vitriol hurled at President-elect Trump from Silicon Valley. While stocks have rallied, the sell-off put many of the top dividend-paying stocks right back in the wheelhouse for investors looking for solid total return.
We screened the Merrill Lynch research universe for large cap technology stocks that were rated Buy and pay a dividend. We found five that make good sense for investors looking to put some cash to work now.
This leader in semiconductors is working hard to scale away from dependence on personal computers. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide. The company’s platforms are used in various computing applications comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.
The company also provides communication and connectivity offerings, such as baseband processors, radio frequency transceivers and power management integrated circuits, and tablet, phone and Internet of Things solutions, which include multimode 4G LTE modems, Bluetooth technology and GPS receivers, software solutions and interoperability tests, as well as home gateway and set-top box components.
Intel reported an inline third quarter, but data center sales came in way below expectations for the tech giant. Intel does a stunning 82.4% of their sales overseas, the lion’s share of it in Asia, where the chips that it produces are used in personal computers, tablets and other personal electronic devices. Fears of trade issues with China have taken a toll on the stock, and the timing looks good.
Intel investors receive a 3.0% dividend. The Merrill Lynch price target for the stock is $42. The Wall Street consensus target is $40.26. The shares closed Thursday at $35.02.
This is another top old-school technology stock that gives investors a degree of mega-cap tech safety, and it has a massive $105 billion sitting on the balance sheet. Microsoft Inc. (NASDAQ: MSFT) continues to find an increasing amount of support from portfolio managers, who have added the software giant to their holdings at an increasingly faster pace all of this year and last.
Numerous Wall Street analysts feel that Microsoft...