Interest rates have risen the fastest in the past year since the 1980s, and investing seems to be getting increasingly complicated, as much of the trading on Wall Street is computer-driven by algorithms. So what should growth investors who are more aggressive consider doing as we get ready to close out the first quarter? One terrific idea is to look for the top technology companies that pay a higher dividend than the S&P 500 itself.

Technology has been in a white-hot spotlight over the past six months as layoffs have been massive. Amazon alone is laying off close to 20,000 employees. Does that mean the industry is doomed? Not at all. The huge belt-tightening is due to the overhiring and growth spurt that was a product of the COVID-19 pandemic. Now, to increase earnings, big tech is cutting costs.

We screened our 24/7 Wall St. technology research universe looking for stocks that are Buy rated on Wall Street and come with larger dividends than the S&P 500 average, which currently stands at 1.7%, a 15-year low. Seven top stocks hit our screening process, and all make sense for long-term growth investors looking for tech ideas with solid dividends that can help to enhance the total return potential.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Cisco

Investors who are more conservative may want to consider this mega-cap tech leader, which recently posted outstanding quarterly results. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.

Cisco provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.

Its cybersecurity products give clients the scope, scale and capabilities to keep up with the complexity and volume of threats. Putting security above everything helps corporations innovate while keeping their assets safe.

The networking giant recently posted solid quarterly results that beat earnings expectations, and it offered up strong forward guidance.

Shareholders receive a 3.14% dividend. The Credit Suisse target price on Cisco Systems stock is $69, while the consensus target is lower at $57.55. Shares opened at $50.32 on Tuesday.

Corning

This company continues to be a huge player in the fiber optic world. Corning Inc. (NYSE: GLW) is a technology pioneer that manufactures LCD glass for flat-panel displays for multiple product lines.
Telecommunications (30% of sales) produces optical fiber and cable, component hardware and equipment, and photonic components for the telecommunications, CATV and networking industry. In addition, the company’s Environmental Technologies division (12% of sales) produces specialized glass, glass ceramic and polymer-based products for the automotive industry.

Corning stock comes with a 3.43% dividend. J.P. Morgan’s $40 price target compares to the $37.74 consensus target and Tuesday’s open at $33.35 a share.

Dell Technologies

This is a high-quality company paying a solid dividend, but its shares have been hit hard. Dell Technologies Inc. (NYSE: DELL) designs, develops, manufactures, markets, sells and supports information technology (IT) hardware, software and services solutions worldwide. It operates through three segments.

Infrastructure Solutions Group provides traditional and next-generation storage solutions, and rack, blade, tower and hyperscale servers. It also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences and accelerate business applications and processes. It also offers attached software and peripherals, as well as support and deployment, configuration and extended warranty services.

The Client Solutions Group offers desktops, notebooks and workstations; displays and projectors; attached and third-party software and peripherals; as well as support and deployment, configuration and extended warranty services.

The VMware segment supports customers in the areas of hybrid and multi-cloud, modern applications, networking, security and digital workspaces, helping customers to manage IT resources across private clouds and complex multi-cloud, multi-device environments.

Dell also provides information security and cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments.

Investors receive a 3.91% dividend. Credit Suisse has set a $50 price target. Dell Technologies stock has a consensus target of $46.76. On Tuesday’s open, shares traded for $37.88 apiece.

IBM

This blue chip giant still offers investors an incredibly solid entry point, a massive dividend and a degree of safety. International Business Machines Corp. (NYSE: IBM) provides integrated solutions and services worldwide through these four business segments.
The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data and identity. This segment also provides transaction processing software that supports clients’ mission-critical and on-premise workloads in banking, airlines and retail industries.

The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services.

The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients’ mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment.

The Financing segment offers lease, installment payment, loan financing and short-term working capital financing services.

The dividend yield here is 5.35%. Stifel has a $158 price target, which is higher than the $146.13 consensus target. IBM stock traded at $129.18 on Tuesday’s open.

Juniper Networks

This is another familiar name that could offer among the best in total return potential. Juniper Networks Inc. (NYSE: JNPR) designs, develops and sells network products and services worldwide. The company offers various routing products, such as ACX series universal access routers to deploy new 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 including 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.

Shareholders receive a 2.74% dividend. Juniper Networks stock has a $42 price target at J.P. Morgan. The $33.88 consensus target is closer to Tuesday’s open at $32.72.

This disk drive giant 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 elsewhere.

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. 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 16 terabytes.

The dividend yield is 4.55%. The $82 Mizuho Securities price objective is well below the $102.90 consensus target, but Seagate Technology stock traded at $62.21 on Tuesday’s open.

Texas Instruments

This old-school semiconductor company offers solid value at current levels and is a great pick for investors who are more conservative. Texas Instruments Inc. (NASDAQ: TXN) is a broad-based supplier of semiconductor components, ranging from digital signal processors to high-performance analog components, to digital light-processing technology and calculators.

Some 65% of the company’s sales are exposed to the well-diversified, business-to-business industrial, automotive, communications infrastructure and enterprise markets. While business from those sectors, especially automotive, could suffer in the near term, the analyst feels the solid dividend should support the shares. The company is also a big Apple supplier, so the long-term outlook for this venerable leader makes it a safer bet for investors with less risk tolerance.

The company is also a big Apple supplier, so the long-term outlook for this venerable leader makes it a safer bet for investors with less risk tolerance.

Investors receive a 2.75% dividend. The BMO Capital Markets price target is $215, and the consensus target for Texas Instruments stock is $183.45. Tuesday’s opening share price was $176.37.

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These seven top technology companies have paid strong and dependable dividends for years, and each has carved out specific silos in which it excels in the sector. It should be noted that technology is volatile, and should the market take another big leg down, they can get hit harder than more conservative ideas. But for those with a higher risk tolerance and time on their side, all seven make good sense now.

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