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 U.S and around the world, but what if you want to own technology stocks, but you also need income? The ten year treasury bond has sold off some recently, but still yields a puny 1.61%, and the S&P 500 yield still 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 and found five that look like outstanding ideas now. All five are rated Buy at top Wall Street firms, but it’s important to remember that no single analyst report should be used as a sole basis for any buying or selling decisions.

ASE Technology

While perhaps off-the-radar, this stock offers investors massive total return potential. ASE Technology Holdings Company Ltd. (NYSE: ASX) provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally.

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; 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 are paid a solid 3.08% dividend. BofA Securities has a Buy rating to go along with an $11 price target. The Wall Street consensus target is set higher at $11.43. The last trade for Tuesday was reported at $7.06.

 

Hewlett Packard Enterprise

This was a spin-off from a silicon valley legend and holds solid upside potential. Hewlett Packard Enterprises (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; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, HPE Moonshot, and HPE Edgeline products.

Hewlett Packard Enterprises provides mobility and Internet of Things solutions under the Aruba brand, which include Wi-Fi access points, switches, routers, and sensors; such as 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 Hewlett Packard Enterprise and others. Further, the company invests in communications and media solutions, Hewlett Packard labs, and various business incubation projects.

Investors are paid a very reasonable 3.12% dividend. Wells Fargo has an Overweight rating and a $20 price target The consensus target is set lower at $17.40. The shares were last seen Tuesday at $15.37.

 

IBM

This blue chip giant is still offering investors a very solid entry point. International Business Machines (NYSE:IBM) is a leading provider of enterprise solutions, offering a broad portfolio of 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.

IBM comprises five major segments: (1) Cognitive Solutions, (2) Global Business Services, (3) Technology Services & Cloud Platforms, (4) Systems, and (5) Global Financing. The 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 are paid a significant 4.62% dividend. The analysts at BofA Securities reiterated the firm Buy rating after the aforementioned stellar second quarter earnings report and raised the price target to $176. That is versus the $151.71 consensus target and Tuesday’s closing print of $141.98.

 

Juniper Networks

This is another familiar name that could be offering among the best total return potential Juniper Networks, Inc. (NASDAQ: JNPR) designs, develops, and sells network products and services worldwide. The company offers routing products, such as ACX series universal access routers to deploy 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 comprising 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 are receiving 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.

 

Seagate

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 internationally.

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 (OEMs). 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 16TB.

Shareholders enjoy a 3.30% dividend. UBS has a Buy rating and the price target is set at $105. The consensus target is posted lower at $102.90. The last trade Tuesday hit the tape at $81.12.

Five top technology companies that also pay out 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 earnings right around the corner.

Source: Read Full Article