With the release of the very highly anticipated iPhone 7, technology, and especially Apple Inc. (NASDAQ: AAPL), is back in the spotlight, and with good reason.
Despite a stock market that is somewhat bloated and trading near historically high multiples, technology stocks, with the exception of certain sub-sectors like semiconductors, remain cheap for the most part. With the traditionally strong fourth quarter right around the corner, adding some tech to a long-term growth portfolio makes sense now.
We screened our 24/7 Wall St. research database for technology companies that also pay solid dividends. We also screened for companies rated Buy at a major firm. We found four that look very interesting now.
This top European tech and telecom company offers a solid dividend that continues to go higher. Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) provides network equipment and software, as well as services, for network and business operations worldwide.
Its Networks segment delivers products and solutions for mobile access, internet protocol (IP) and transmission networks, core networks and cloud. This segment offers radio access solutions; IP routing and transport solutions; microwave and optical transmission solutions for mobile and fixed networks; IP multimedia subsystem solutions; a cloud platform that handles workloads for various clouds; and telecom, IT and commercial cloud services.
The company’s Global Services segment delivers managed services, including services for designing, building, operating and managing the day-to-day operations of the customer’s network or solutions; maintenance services; network sharing solutions; shared solutions; and managed services of IT environments, as well as provides broadcast and media services.
Shareholders are paid a very nice 4.46% dividend. The JPMorgan price target for the stock is $8.60, and the Wall Street consensus price objective is $6.80. The shares were trading at $6.72 midday Friday.