2 Tech Dividend Stocks to Buy This Month
The uncertainty surrounding the broader economy might lead to a resumption of the market’s sell-off. Next week’s Congressional negotiations could also bring some volatility. Given the technology sector’s solid growth prospects, it could be wise to invest in dividend-paying tech stocks NetApp (NASDAQ:NTAP) and ASE Technology Holdings (ASX) to secure a stable stream of income.The Chinese real-estate giant Evergrande’s possible collapse has increased volatility. Many analysts are increasingly concerned about the growth outlook for next year. With concerns over higher-than-expected inflation and Covid variants, Federated Hermes’ chief market strategist Phil Orlando anticipates a 10% market correction. Next week, the administration faces deadlines with the Democrats pushing to pass the infrastructure and social services bill, which may mean a frantic time for the market and increasing volatility.
However, the technology sector has witnessed substantial growth over the past year, with continued digital transformation and work-from-home trends. The Technology Select Sector SPDR ETF (NYSE:XLK) gained 36.2% over the past year and 19.4% year-to-date. Amid the anticipated market volatility, dividend-paying stocks could be the right choice for ensuring a steady income stream.
Given this backdrop, NetApp, Inc. (NTAP) and ASE Technology Holding Co., Ltd. (NYSE:ASX), which pay attractive dividends and possess solid growth prospects, could be good additions to your portfolio this month.
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