Market Surge as Trump Reverses Tariff Policy Amid Ongoing Uncertainty

Stocks experienced a significant rally on Wednesday following President Donald Trump’s decision to reverse his ‘reciprocal’ tariff policy. This change came in response to declining market conditions and concerning activities in the bond market.

While many countries have received exemptions from the steepest import taxes, a 10% flat tariff remains. Simultaneously, tariffs on China have soared to 145%. Despite these adjustments, bond yields continue to remain high, and stock values are still considerably below the records set in February before they declined again on Wednesday. The market remains fraught with uncertainty and the risk of recession looms large.

In such a climate, focusing on dividend-paying stocks could be prudent. Investors can still find opportunities in technology sectors while prioritizing dividend yield over capital gains. Here are five noteworthy tech stocks offering solid dividends.

Typically, technology stocks are not known for their dividends. However, a select few provide robust payouts, helping investors navigate this uncertain environment. We have identified four tech companies that have consistently increased their dividend payouts for at least 10 years. Each boasts a dividend yield of at least 2%, a manageable payout rate, fair valuation, and the ability to minimize impact from the stringent tariffs imposed on China.

Avnet Inc.

Avnet Inc. AVT serves as a distributor of electronic components like semiconductors and other electromechanical parts. Operating globally, Avnet ranks as the largest chip distributor in Europe. This extensive market reach positions the company to mitigate the adverse effects of tariffs. After a challenging performance in 2024, its current valuation appears promising.

Though AVT shares currently lag for 2025, the stock trades at just 8.3 times forward earnings with a 0.18 Price-to-Sales (P/S) ratio. The dividend yield stands at 3.17%, with a low payout rate of 37%. Avnet has maintained its annual dividend increases for 12 consecutive years, exhibiting a 12% annualized growth rate over the past three years. Additionally, Benzinga Edge ratings give the stock a 91.81 Value score, indicating it may be undervalued while maintaining a steady dividend.

Cisco Systems

Cisco Systems CSCO, once a leader during the dot-com bubble with a market cap surpassing $500 billion, has not returned to those heights in over two decades. It has been 25 years since Cisco reached an all-time high exceeding $77 per share (on a split-adjusted basis), although it nearly approached this mark again in January, with shares climbing above $66. Despite not dominating the tech scene as it once did, Cisco remains a solid investment option.

Currently, Cisco offers a 3.08% yield and has raised its annual dividends for 12 years. Its dividend payout rate is 71%, which remains sustainable due to its substantial revenue from high-margin software. The company recorded over $54 billion in sales in the past year, yet it trades at a modest 14.6 times forward earnings.

With an emphasis on cybersecurity software over hardware, Cisco is likely insulated from the impact of China tariffs. Analysts hold a consensus Buy rating for the stock with an average price target of $63.43, including a bullish $80 target set by Rosenblatt on February 13.

Qualcomm Inc.

Qualcomm Inc. QCOM represents a notable comeback story within the market. Like Cisco, Qualcomm soared to dramatic heights during the dot-com era but faced severe declines following the bubble burst. The stock, however, rebounded strongly post-financial crisis, finally surpassing its former high in early 2019.

Qualcomm focuses on developing and licensing wireless technology and chips for smartphones, generating over $40 billion in annual sales. The stock offers a solid dividend with a yield of 2.73% and a payout rate of 36%. The company has a commendable history, raising dividends for 22 consecutive years and achieving a 7% annualized growth rate over the last three years. Its shares also trade affordably at just 11.7 times forward earnings, backed by robust margins (26% profit margin in the latest quarter).

Analysts remain optimistic, with a $195 average price target indicating a potential upside of 35%. Furthermore, Qualcomm holds a remarkable 91.82 Value score from Benzinga Edge, the highest among today’s recommendations.

CSG Systems International Inc.

CSG Systems International Inc. CSGS is the smallest and perhaps the least known company on our list, yet it possesses considerable promise. The company operates a software-as-a-service (SaaS) platform that focuses on financial management and customer experience solutions. By assisting firms in the communications sector, CSG aims to enhance digital presence while effectively managing revenue and infrastructure.

While small and mid-cap companies typically offer substantial dividends, CSG Systems presents an exception. The stock currently yields 2.13% with a healthy 42% payout rate. Despite its modest size, CSGS has consistently increased its annual payouts for 12 consecutive years, maintaining a 6.3% annualized growth rate over the past three years.

Unlike broader market trends, CSGS shares have shown positive performance year-to-date, including a notable 17% gain over the last three months. Even amid tariff adjustments, the stock only dipped from $61 to $56 before rebounding to surpass $60 after the tariffs were withdrawn. This stability may explain why CSGS boasts a 90.51 Momentum ranking from Benzinga Edge, reflecting a minimal impact from market disruptions.

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