The tech industry is a battleground for the biggest companies in the world, with Microsoft, Apple, and Nvidia fighting for the top spot in terms of market cap. Apple briefly took the lead after its AI announcement at the WWDC24, but Microsoft quickly caught up. Meanwhile, Nvidia, the newcomer, is making strides with its data center products optimized for AI.
Investors are flocking to tech companies, driving prices to new highs. However, the sector’s unpredictable price movements may not be suitable for risk-averse income investors. To navigate this volatile market, consider investing in high-yield tech stocks.
Using Barchart’s Stock Screener, the top three highest-yielding buy-rated tech stocks were identified. These companies offer a balance of growth potential and stability, making them attractive investment options. Let’s take a closer look at each of them:
1. HP Inc (HPQ)
HP Inc is a well-known player in the tech industry, offering a range of computer products and solutions. Despite a slight drop in revenue in 2023, the company beat expectations with an increase in EPS. HPQ stock has a forward yield of 3.02% and is rated as a moderate buy by analysts.
2. OpenText Corporation (OTEX)
OpenText specializes in networking and technology solutions for various industries, with a focus on AI-led platforms and analytics. The company saw significant revenue growth in FY’23, with double-digit increases in recurring and cloud revenues. OTEX offers a 3.50% yield and is rated highly by analysts.
3. Cisco Systems Inc (CSCO)
Cisco is a global leader in networking products and services, catering to a wide range of customers. The company reported an 11% YOY increase in revenue for FY’23, with strong guidance for 2024. CSCO stock has a forward yield of 3.51% and is rated as a moderate buy by 24 analysts.
While these three stocks offer attractive dividends and growth potential, it’s essential to consider your investment goals and risk tolerance before making any decisions. By investing in high-yield tech stocks, you can capitalize on the sector’s growth while maintaining a defensive portfolio.
In conclusion, the tech industry is a dynamic and ever-evolving market, offering opportunities for savvy investors. By choosing high-yield tech stocks like HP Inc, OpenText Corporation, and Cisco Systems Inc, you can benefit from both stability and growth in this fast-paced sector.
