As the whirlwind of innovation sweeps through the tech sector, investors are reevaluating their strategies, seeking a more resilient refuge in tech dividend stocks. The recent flow of money out of publicly traded tech companies – amounting to a staggering $4.4 billion in a single week – as reported by Reuters, signals a shift in sentiment towards safer investments, particularly investment-grade bonds. It appears the smart money is sensing an overheated tech market.
Though innovation remains the heartbeat of modern economies, a more cautious approach is prudent in these turbulent times. Amidst the flux, below are three tech dividend stocks that promise stability and steady returns.
Broadcom: The Steady Ship Amidst Choppy Waters
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Operating in the semiconductor sector, Broadcom (NASDAQ:AVGO) stands out for its consistent performance. Despite not dazzling with flashy numbers, AVGO has positioned itself as a reliable tech dividend stock. The company surpassed its quarterly EPS estimates in the last fiscal year, delivering an average earnings surprise of 2.78%.
Analysts project an EPS of $46.86 and revenue of $50.36 billion for fiscal 2024. This suggests an impressive 40.6% increase in revenue from the previous year. Looking ahead to 2025, revenue estimates soar to $57.19 billion. With a forward annual dividend yield of 1.58% and a unanimous strong buy rating, Broadcom seems poised for growth with a potential 20% upside.
Taiwan Semiconductor: A Chip Giant’s Sturdy Foundation
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As a powerhouse in chip manufacturing, Taiwan Semiconductor (NYSE:TSM) offers stability in a volatile market. While bearing potential for capital gains, TSMC solidifies its position as a top tech dividend stock with its consistently robust performance. With an average positive earnings surprise of 7.73% over the past year, TSMC is a reliable choice for investors seeking stability.
Projections for fiscal 2024 stand at an EPS of $5.76 and revenue of $84.49 billion, showcasing substantial growth from the previous year. Sporting a forward yield of 1.47% and a strong buy consensus from analysts, Taiwan Semiconductor presents an attractive proposition for investors.
Qualcomm: Connecting Dividends to Innovation
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Driving innovation in the wireless industry, Qualcomm (NASDAQ:QCOM) forges a path connecting dividends and technological advancement. While not the flashiest performer, Qualcomm has shown steady improvement, meeting or exceeding consensus estimates consistently.
Analysts forecast an EPS of $9.76 and revenue of $38.13 billion for this fiscal year. Qualcomm, with its impressive 6.28% positive earnings surprise, presents a stable option for investors seeking a tech dividend stock.
