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3 High-Yield Tech Stocks to Buy to Combat Continued Coronavirus Volatility

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On today’s episode of Full Court Finance here at Zacks, Ben Rains dives into the continued coronavirus-based market downturn that caused another trading halt on Monday. We then take a look at three tech stocks that investors might want to consider buying for their strong dividend yields and more. 

The stock market has plummeted out of the historic bull market at lightspeed. The downturn continued Monday, with all trading halted for 15 minutes after the S&P 500 slipped over 7% right after the opening bell. 

The decline came after the U.S. Federal Reserve on Sunday slashed its benchmark interest rate to near zero. The Fed cut rates for the second time in an effort to help the economy battle through the coronavirus impact that will likely get worse as large gatherings are canceled and restaurants, stores, and more are closed. Over the weekend, Apple (AAPL - Free Report) , Nike (NKE - Free Report) , and other giants announced they would close their stores.

Amid all of the market uncertainty, investors might be looking for dividend paying stocks as a source of income. Today we take a look at three strong tech stocks that boast high dividend yields and also hold longer-term appeal to anyone looking to get in on some stocks at a discount as they fall.

We start with semiconductor firm Broadcom (AVGO - Free Report) , which reported its Q1 fiscal 2020 financial results last Thursday, alongside Adobe (ADBE - Free Report) and Oracle (ORCL - Free Report) . The firm pulled its full-year guidance based on coronavirus uncertainty. But AVGO’s dividend yield, along with other fundamentals might make it appealing.

We then dive into AT&T (T - Free Report) , which is in the midst of a transformation for the streaming age, as it fights to compete against Netflix (NFLX - Free Report) , Disney (DIS - Free Report) , Amazon (AMZN - Free Report) , and others. Plus, the telecom firm’s broadband internet business looks poised to grow and its 5G rollout should start to heat up soon.

On top of that, its dividend yield is strong compared to rival Verizon (VZ - Free Report) . AT&T is also buying back stock and paying down debt as part of its a deal with activist investor Elliott Management.

We then close with IBM, which signaled to Wall Street that it is committed to its cloud computing transition when it announced in late January that Ginni Rometty would step down as CEO. IBM’s new chief executive, Arvind Krishna, has already played a key role in turning the company’s focus to cloud, AI, and quantum computing in the big data era.

IBM is currently a Zacks Rank #2 (Buy) and its yield easily tops Qualcomm (QCOM - Free Report) , Microsoft (MSFT - Free Report) , and other tech giants. 

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