- The recent market drop has opened up some very interesting opportunities with these six tech stocks to buy.
- HP Inc. (HPQ): This PC company has a dividend yield of 2.8%, a forward price-to-earnings ratio of 8.2x. He also has Buffett as a fan.
- Avnet (AVT): An electronics distributor with a return of 2.25% paid for the last eight years and a forward P/E of 7x.
- KT Corp (kt): Korean telecoms with a paid return of 5.2% over the last six years and a forward P/E of 6.3x.
- United Microelectronics (CMU): Taiwanese chipmaker with a potential return of 4.4%, a dividend paid in the last 10 years and a forward P/E of 7.9x.
- Qualcomm (COMQ): A major US telecommunications chipmaker with a yield of 2.28% and a forward P/E of just 10x.
- Nvidia (NVDA): A major chip stock trading well below its average forward P/E of 40x, now at just 30x.
These six tech stocks now look like bargains, as their prices seem to reflect a Great Recession. Most of these stocks have very low price/earnings ratios compared to their historical record. This makes them worth buying now.
Value investors don’t try to time the markets. Instead, they try to take advantage of trading opportunities like with these tech stocks.
HP Inc (HPQ)
HP Inc. (NYSE:HPQ) is a low-tech company with a decent return of 2.8%. It also has a consistent buyback program. Its annual dividend of $1.00 represents 23% of its earnings per share (EPS) forecast of $4.26 for 2022. Additionally, HP has produced 11 consecutive years of dividend increases, as well as 32 years of payouts. continuous dividends.
Based on analyst estimates, HPQ shares are trading at just 8.4 times forward earnings estimates.
Warren Buffett loves HP and recently took a large 11.4% stake in the company. HPQ stock is likely to be one of the top tech stocks to own that pays a dividend and also has a sub-10x P/E.
Avnet (NASDAQ:AVT) is an electronics distributor that pays a dividend of $1.04 per year. This gives it a dividend yield of 2.25%. Additionally, Avnet has been paying an annual dividend for eight years.
Analysts expect it to make EPS of $6.85 this year, well above the $1.04 dividend. Earnings will increase to $6.82 next year. So, at today’s prices, AVT shares are trading at a forward P/E of just over 7x.
This is mainly due to the higher price of chips and other technology-related items, as well as higher logistics-related revenue. Avnet is one of the best cheap tech stocks to own that pays consistent dividends.