With the market starting to look very heavy, and yields still where they were a year ago despite howls from pundits they were going higher, what are investors to do now?

Sell in May and go away always sounds like a good idea, and generally works, but that is not easy for most investors as the commission aspect always looms. One good idea is to look for some fallen angels that pay solid dividends.

One area that has been beaten down, especially over the past couple of months, is technology. With the smartphone cycle more of a second-half story, and the continued slowing of the personal computer market, the question is where is the opportunity for aggressive investors that would be glad to wait on a company if the dividend is solid?

We screened the Merrill Lynch research universe and found three tech stocks all yielding more than 4% that could have a solid turnaround on the way. All are rated Buy.

HP

This is the printer and personal computer businesses of the old Hewlett-Packard. HP Inc. (NYSE: HPQ) provides products, technologies, software, solutions and services to individual consumers and small- and medium-sized businesses, as well as to the government, health and education sectors worldwide.

The company’s Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin client PCs, tablets, retail point-of-sale systems, calculators and other related accessories, software, support and services for the commercial and consumer markets.

The Printing segment provides consumer and commercial printer hardware, supplies, media, scanning device and software and services, as well as laserjet and enterprise, inkjet and printing, graphics, and software and web services.

HP investors receive a very solid 4.31% dividend. The Merrill Lynch price target for the stock is $15, and the Thomson/First Call consensus estimate is $13.55. The shares closed most recently at $11.55.
Garmin

This stock fell out of the limelight and could be poised for a solid comeback. Garmin Ltd. (NASDAQ: GRMN) designs, develops, manufactures, markets and distributes a range of navigation, communication and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. While the growth of smartphone GPS put a crimp in the company’s business, the expansion into new products is proving successful.

The company has no debt and boasts cash of over $1 billion, or $5.58 a share. There’s some frustration that it hasn’t been more aggressive in repurchasing shares, given its strong balance sheet. That could change if activists take aim at Garmin, which is chatter that has been heard on Wall Street for years.

Garmin investors are paid an outstanding 5.08% dividend. The Merrill Lynch price objective is $47, and the consensus target is $42.75, Shares closed at $40.165 on Thursday.

Qualcomm

This top technology stock has totally underperformed this year and also resides on the Merrill Lynch US 1 list. Qualcomm Inc. (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. It includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio.

Qualcomm Technologies, a subsidiary of Qualcomm, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. The company recently settled with the SEC over the hiring of relatives of Chinese officials, which has removed an overhang on the stock.

The growth of 3G mobile technologies in emerging markets, like China and India, has had a positive impact on Qualcomm and could be a difference maker going forward. Qualcomm is and has been for years a market leader in the development of 3G CDMA (Code Division Multiple Access) technologies. The company recently developed an LTE chipset that supports SCDMA (Synchronous Code Division Multiple Access) technology. China’s mobile network runs on this, and it could provide the company with a huge leg up in years to come.  The company signed numerous big licensing deals recently in China that gave the stock a solid boost.

Qualcomm posted solid fiscal second-quarter numbers that beat estimates, but the forward guidance was tepid. While the Merrill Lynch team sees some potential share loss at Apple, they think a resolution with LG could offset the loss.

Qualcomm shareholders receive a 4.12% dividend. The Merrill Lynch price target is $65, and the consensus target is $56.69. The stock closed Thursday at $51.51.

All these companies trade well off of highs printed last year, and all have solid upside potential. These are more suited for aggressive growth accounts that can tolerate volatility.

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