Alphabet is the latest tech giant to join the dividend-paying club, and analysts say there is a list of names that could give investors a combination of growth and income. Google's parent company announced last week that its board of directors had authorized a dividend of 20 cents per share, payable on June 17 to shareholders of record as of June 10. Alphabet's board of directors also approved a $70 billion stock buyback. The news, which accompanied a first-quarter earnings beat, lifted Alphabet shares 10% on Friday. All eyes remain on technology stocks this week, with Amazon and Apple set to report earnings after the market close on Tuesday and Thursday, respectively. After a strong rally at the start of the year, technology stocks have retreated in recent weeks as investor concerns about soaring valuations come to the fore. However, the S&P 500 IT sector index rose more than 8% during the year. Investors can still find opportunities in the form of technology stocks that pay dividends and have a trajectory for growth. CNBC Pro recently examined FactSet data for the stock with the following criteria: Deliver earnings, have upside to the consensus price target, have an average analyst rating of Overweight or Buy One name that fits the bill is semiconductor company Qualcomm. The stock's dividend yield of 2% is higher than the S&P 500's yield of 1.3%. Qualcomm shares have risen about 15% this year, but analysts' consensus prices indicate an additional 7% upside. The company is expected to announce its second-quarter financial results after the closing bell on Wednesday afternoon. Earlier this month, Benchmark gave Qualcomm a buy rating. “We believe Qualcomm is particularly well positioned to benefit from industry trends of shifting AI computational inference workloads to network edges, as the company leverages its strengths in wireless connectivity,” the company wrote Oracle has a dividend yield of 1.4%. Analysts believe the cloud software company could rise another 20% on top of the nearly 9% already added this year. The company announced last week that it will move its global headquarters to Nashville, Tennessee, to establish a stronger position in a major hub for the healthcare industry. Oppenheimer began coverage of Oracle with a perform rating earlier this month, noting that the company appears to be a long-term beneficiary of secular software industry trends including generative artificial intelligence and digital transformation. With a dividend yield of 1.6%, Broadcom also made the list. Shares of the semiconductor maker are up 18% this year, but consensus shows it could have another 15%. Earlier in April, Barclays reiterated its overweight stance on Broadcom shares, while simultaneously raising its price target to $1,500 from $1,405. This updated level indicates a 12% upside for the stock. “In the end, we came away with a valuable second opinion about the future of AI and a greater appreciation for the company’s many ways to win,” the company wrote. Other notable technology winners on the list include materials science technology company Corning and semiconductor manufacturer Analog Devices.
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These technology stocks pay dividends, have an upside, and are well liked by analysts
