Three High-Yield Tech Stocks To Buy Now

Looking For Growth And Yield? Here It Is

There is no question that we are witnessing one of the greatest buying opportunities of our lifetime. The S&P 500 is down about 20% from its highs offering a discount to prices we may not see again. I say may not see again because prices could bounce higher with the flash of headline. There is risk prices could fall, too, but I think it prudent to do some selective purchasing while prices are at these levels. With the Tech Sector poised to post the most growth this year, that is the sector I want to target.

High-Yielding AT&T Tops The List

AT&T (T) technically isn’t a tech stock but I don’t care. As the world’s leading telecommunications company it is an integrated play on everything from 5G to the IoT, technology infrastructure, and eCommerce. And it pays a whopping 5.8% dividend at current prices that I find very attractive. AT&T is a well-known dividend aristocrat, one well on its way to Dividend King-ship, and pays a safe distribution.

What makes this company such a nice buy today is that it has some insulation from the coronavirus. AT&T faces some issues with the virus just like everybody else but their recurring business is rock-solid and the outlook for 5G is robust.

In fact, with the coronavirus hampering activity, AT&T could see an uptick in traffic across its networks. Both consumers and businesses are turning toward stay-at-home options that will rely on AT&T and other network infrastructure services. In terms of growth, the outlook for growth is not robust but it is present. Revenue and EPS should grow 0.5% and 1.5% this year and then accelerate to 2.8% and 4.7% next.

At the technical level, shares of ATT are showing signs of bottoming although the risk of decline is still high. Share prices have bounced off of support at the $34 level, a level of past support and resistance, and seem to be confirming that with a second bounce. The indicators are consistent with support and may fire a strong buy signal very soon so I am optimistic we're nearing the bottom of the correction. Until then, cautious purchases are recommended keeping in mind a lower entry below $34 is still on the table.

Looking For Growth And Yield? Here It Is

Cisco Systems Makes Infrastructure For Technology

Our technological world is all about connectivity and Cisco Systems (CSCO) is at the heart of it all. Cisco Systems is a leading manufacturer of IP and network hardware and software globally. It serves the communications industry in all its forms and is an integral cog in the global IT infrastructure network.

The dividend isn’t as nice as with AT&T but it is still an attractive buy. Cisco is yielding over 3.5% at current price levels and the distribution is theoretically safer than AT&T’s. Where AT&T is paying about 60% earnings in dividends, Cisco is distributing less than 45% and the outlook for EPS growth is better.

The only hiccup is that revenue is expected to shrink this year, almost 2.0%, but it is offset by EPS growth. EPS is expected to grow 5% this year and next ensuring dividend safety for the foreseeable future.

Shares of Cisco are trading at a near-two year low and showing signs of bottoming. Not only is price action bouncing from a key support level, but the indicators are also diverging and stochastic is showing a strong buy. If momentum carries through and turns bullish this stock could see price action rebound 10% to 15% in the near-term. The caveat is this, support at the low may be retested or even broken before a rebound occurs so investors should remain cautious with their purchases.

Juniper Networks, A Rebound Ready To Happen

Juniper Networks (JNPR) manufactures, sells, services and trains businesses to use networking and ethernet equipment. The company’s stock has been under pressure for the last few years due to stagnant growth but a turnaround is underway. Juniper is expected to return to growth this year and see that growth expand over the next few.

Juniper’s growth story will be underpinned by the 5G revolution. The roll-out of 5G and the increased connection speeds it will bring are going to fuel growth in the IoT. Billions of IoT devices will need to be routed and connected to IT infrastructure in order to work and that is where Juniper comes into play.

The stock is yielding a relatively safe 3.6% at today’s prices which is pretty nice. The 45% payout ratio leaves foom for future increases without earnings growth in the forecast which is a bonus. The short 3-year history of increases far from guarantees future increases are coming but it does suggest one might. Regardless, with a yield above 3.6%,  EPS growth in the forecast, the 5G tailwind, and share prices at long-term lows this stock is worth a little nibble.