- The market’s recent tumble has opened up some very interesting opportunities with these six tech stocks to buy.
- HP Inc (HPQ): This PC company has a 2.8% dividend yield, a forward price-to-earnings ratio of 8.2x. It also has Buffett as a fan.
- Avnet (AVT): An electronics distributor with a 2.25% yield paid for the last eight years and a forward P/E of 7x.
- KT Corp (KT): Korean telecom with a 5.2% yield paid for the last six years and a forward P/E of 6.3x.
- United Microelectronics (UMC): Taiwan chipmaker with a prospective 4.4% yield, a dividend paid for the last 10 years and a 7.9x forward P/E.
- Qualcomm (QCOM): A major U.S. telecom chip designer with a 2.28% yield and a forward P/E of just 10x.
- Nvidia (NVDA): A major chip stock trading well below its average 40x forward P/E, now at just 30x.
These six tech stocks look like bargains now, as their prices seem to reflect a large recession. Most of these stocks feature very low price-to-earnings ratios compared to their past history. This makes them worth buying now.
Value investors don’t try to time markets. Instead, they try to take advantage of bargain opportunities like with these tech stocks.
HP Inc (HPQ)
HP Inc (NYSE:HPQ) is s a low-tech company that has a decent 2.8% yield. It also has a consistent buyback program. Its annual $1.00 dividend is 23% of its $4.26 earnings-per-share (EPS) forecast for 2022. Moreover, HP has produced 11 consecutive years of dividend increases, as well as 32 years of continuous dividend payments.
Based on analysts’ estimates, HPQ stock trades for just 8.4 times forward earnings estimates.
Warren Buffett likes 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 P/E below 10x.
Avnet (NASDAQ:AVT) is an electronics distributor that pays a $1.04 dividend annually. This gives it a 2.25% dividend yield. Moreover, Avnet has paid a dividend annually for the past eight years.
Analysts forecast that it will make EPS of $6.85 this year, well more than the $1.04 dividend. Earnings will rise to $6.82 next year. So, at today’s prices, AVT stock trades 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 pay consistent dividends.