2023 Stock Market Gains Are Tech Driven: Take Profits Now and Move to Legacy Dividend Tech Stocks

So far, this year has been a big improvement over 2022, and investors can thank big technology stocks for the huge turnaround. Up 16.30% through Tuesday, the Nasdaq has trounced the 1.65% gain of the Dow Jones industrials and the S&P 500’s 7.73% move higher.

The problem is that only a handful of top technology leaders have driven all of the gains so far, and that could be dangerous, as most are at or close to 52-week or all-time highs. While the move higher has been solid, the reality is that Apple and Microsoft have generated nearly 50% of the S&P 500 gains so far this year. If you add in the rest of the FANNG stocks — Facebook (Meta), Amazon, Netflix, Nvidia and Google (Alphabet) — the group has accounted for a stunning 94% of the index gains through April.

One good idea for growth investors looking to stay in the technology sector might be to take profits on the high-flyers and look at some old-school legacy technology companies that may be able to pick up the rally torch in May. We screened our 24/7 Wall St. technology universe searching for industry leaders that may offer solid upside potential and reliable dividends. That combination could provide some powerful total return potential for the rest of 2023, and seven top stocks made the cut.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Cisco

Investors who are more conservative may want to consider this mega-cap tech leader, which recently posted outstanding quarterly results. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.

Cisco provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.

Its cybersecurity products give clients the scope, scale and capabilities to keep up with the complexity and volume of threats. Putting security above everything helps corporations innovate while keeping their assets safe.

The networking giant posted solid fiscal first-quarter results that beat earnings expectations, and it offered up strong forward guidance.

Shareholders receive a 3.30% dividend. Credit Suisse has an Outperform rating on Cisco Systems stock. The firm’s $69 target price compares with a $56.72 consensus target and Wednesday’s close at $45.96.

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Corning

This company continues to be a huge player in the fiber optic world. Corning Inc. (NYSE: GLW) is a technology pioneer that manufactures LCD glass for flat-panel displays for multiple product lines.

Its Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets and handheld devices.

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