With the S&P 500 dividend yield sitting well below 2%, income investors chasing meaningful cash flow are increasingly forced outside the usual REIT and utility sectors. The four names below all pay yields north of 4%, sit in industries most dividend screens ignore (PCs, consumer electronics retail, airlines, and semiconductors), and, more importantly, show the earnings coverage and free cash flow to keep those checks coming. Here are four higher-yield dividend stocks I think the market is distinctly overlooking.

Copa Holdings (CPA)

Copa Holdings (NYSE:CPA) is a name you may not know – but you should. It’s a Latin American airline based in Panama, whose shares are up 25% year to date and about 42% over the past year, with a current yield of 4.58%.

Copa hiked its dividend to $1.71 per quarter in early 2026, up from $1.61, an increase of 6.2%. Q1 2026 EPS came in at $5.16 versus $4.42 expected, and trailing EPS is $16.93, which leaves the $6.84 annualized dividend covered several times over. Operating margin was 24.6%, load factor hit 87.2%, and Adjusted Net Debt to EBITDA sits at just 0.6x. Analysts carry a mean target of $173.13 with 13 buy or strong buy ratings against only 2 holds.

The risk: jet fuel is expensive (and pricing is uncertain due to various macro factors), and management guided operating margin down to 8% to 12% for that quarter. Airlines are cyclical, currency-sensitive, and capital intensive.

HP Inc. (HPQ)

HP Inc. (NYSE:HPQ) trades at around $24, with a market cap of roughly $21 billion and a juicy dividend yield of 5.21%. The stock is up almost 10% year to date but still trades at just 7x forward earnings, one of the cheapest large-cap tech multiples in the market.

HP paid out $0.30 per share in each of its most recent quarters, an annualized rate of $1.20, against trailing EPS of $2.74, so things look well-covered. Q2 FY26 non-GAAP EPS came in at $0.86 versus the $0.7151 consensus, and free cash flow swung to $800 million from negative $100 million a year earlier. Management guided FY26 non-GAAP EPS to $2.90 to $3.10 and free cash flow to $2.8 billion to $3.0 billion, which comfortably funds the payout.

The risk: memory prices are climbing, tariff exposure is real, and printer hardware units fell 7% year over year last quarter. HP is a cash cow, but it is a cyclical one.

Best Buy Co. (BBY)

Best Buy (NYSE:BBY) has been one of the quieter comeback stories of 2026, up ~20% year to date. The current yield sits at 4.84%, backed by a quarterly dividend that was raised to $0.96 in March 2026 (up from $0.95). The most recent payment landed July 9, 2026.

Q1 FY27 gave dividend investors what they needed: adjusted EPS of $1.28 versus $1.23 expected, revenue of $8.94 billion, and enterprise comparable sales of +2.0% after a negative print a year earlier. Management guided FY27 adjusted EPS to $6.30 to $6.60, which supports the $3.84 annualized payout with room to spare, and plans roughly $300 million in buybacks. Trailing EPS of $5.40 and a 14x trailing multiple leave the payout well covered.

The risk: consumer electronics remain cyclical, appliances comps were down 10.5% domestically, and the CEO transition to Jason Bonfig on November 1, 2026 introduces additional execution uncertainty.

Skyworks Solutions (SWKS)

Skyworks Solutions (NASDAQ:SWKS) is the contrarian pick. Shares are trading around $60, down 22% over the past month. That drawdown pushed the yield up to 4.57%, with the quarterly dividend at $0.71 and annualized at $2.84. Forward P/E is 12x.

Q2 FY26 non-GAAP EPS beat at $1.15 versus $1.04, and revenue of $943.7 million topped estimates. The bigger catalyst is a multi-generational design win with a leading Android OEM that management expects to generate more than $1 billion in revenue through 2030, finally reducing Apple concentration. Q1 FY26 free cash flow hit $339 million at a 32.7% margin, which is more than enough to fund the payout. CEO Phil Brace noted, “Mobile outperformed expectations on healthy demand, while Broad Markets continues to accelerate.”

The risk: the proposed Qorvo merger, approved by 81% of shareholders, still faces regulatory review and adds leverage. Semiconductor cyclicality and Apple exposure remain the wild cards.

What to Watch Next

All four of these names offer 4%+ dividends – without the direct interest rate exposure problems that plague REITs and utilities. HP and Best Buy hinge on holiday demand and tariff clarity, Copa on fuel prices, and Skyworks on the Qorvo close and the Android ramp. For income investors willing to accept cyclical exposure in exchange for yields well above the market, these offer four distinct sources of covered cash flow…from names that I think the market is distinctly overlooking.

The post 4 Overlooked Dividend Stocks Yielding 4%+ to Buy in July appeared first on 24/7 Wall St..

Although HP (NYSE: HPQ), Intel (NASDAQ: INTC), and Xerox (NASDAQ: XRX) each defined an entire category of American hardware, Wall Street no longer prices them as peers. One ticker has vaulted, one has drifted, and one is fighting for survival at a sub-$500 million market cap. The more useful frame is the IBM template: when a legacy hardware franchise pivots, survivors carry a real product-cycle catalyst, sufficient balance sheet runway, and operating leverage. Lou Gerstner’s 1990s mainframe-to-services rebuild is the yardstick, and only one of these three currently clears it.

Start with the scoreboard. Intel has climbed 470.3% over the past year and 283.7% since June 2023, closing at $128.32 on June 26. HP slipped 7.4% over the past year and 22.7% across three years, ending the same session at $22.88. Xerox has lost 38.3% over the past 12 months and 76.7% across three, finishing at $3.31. The Gerstner question is which move rests on a rebuild and which is noise.

HP: Managed Decline With a Cash Sleeve

HP’s most recent quarter looks clean on the surface. Q2 FY26 revenue of $14.408 billion rose 8.99% year over year and beat consensus by 2.4%, while non-GAAP EPS of $0.86 beat the $0.72 estimate by 20.26%. Personal Systems surged 13%, Commercial PS jumped 14%, and free cash flow swung to $800 million from negative $100 million a year earlier. Management narrowed the full-year non-GAAP EPS band to $2.90 to $3.10.

However, the core franchise still carries mature-market scars. Printing was flat, Consumer Printing dropped 10%, total PC units fell 7%, and stockholders’ equity remained negative at –$144 million. A restructuring program targets roughly $1 billion in run-rate savings by FY2028 with 4,000 to 6,000 job cuts, while $100 million in buybacks and a $0.30 quarterly dividend return cash to shareholders. The thesis is cost discipline and capital return. That profile matches managed decline rather than Gerstner-grade reinvention.

Intel: High-Stakes Reinvention

Intel’s Q1 FY26 earnings report is the closest match to the survivor profile in this group. Revenue of $13.577 billion grew 7.2% and beat by 9.22%, while non-GAAP EPS of $0.29 crushed the $0.0127 consensus estimate. Data Center and AI revenue vaulted 22% to $5.052 billion, and Intel Foundry grew 16% to $5.421 billion, now roughly 40% of total revenue. Non-GAAP gross margin expanded to 41.0% from 39.2%, marking the sixth consecutive quarter above revenue expectations.

The catalyst stack is tangible. A multiyear Google partnership covers Xeon and custom ASIC IPUs, Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8, and a Terafab project lines up SpaceX, xAI, and Tesla. A $5.0 billion NVIDIA equity investment and a U.S. government equity stake backstop the runway, while cash of $17.247 billion, up 92.77% year over year, funds the foundry buildout. CEO Lip-Bu Tan put it bluntly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The tradeoffs are meaningful: a $4.07 billion Mobileye-related charge drove a $3.73 billion GAAP net loss, foundry remains unprofitable, and capex stays heavy. The profile matches genuine reinvention rather than a capex-cycle trade.

Xerox: Racing the Clock

Xerox is running the abandon-the-old-battlefield script. The Lexmark deal and the ITsavvy and Powerland tuck-ins push the company toward IT and managed services. The balance sheet is the catch. Total liabilities stand at $9.37 billion against just $305 million of shareholders’ equity. Q1 2026 revenue of $1.846 billion rose 26.7% on acquisitions, but pro forma revenue declined 3.7%, and equipment gross margin collapsed to 10.8% from 27.9%, and adjusted EPS of negative $0.43 missed by 56.36%. Free cash flow ran to negative $165 million, and non-financing interest expense surged to $84 million from $33 million on acquisition debt.

CEO Louie Pastor told investors, “We are closer to an inflection point than the external narrative suggests.” The market disagrees. The analyst consensus price target is $2.75, with bearish sentiment, while trailing EPS stands at –$8.34, book value at $2.286, and the forward multiple at 3x. That is a credit-distress profile. The strategy fits the Gerstner playbook on paper. The capacity to execute it fits the Kodak playbook on the filings.

The Ranked Verdict

Measured against the IBM survivor template (product-cycle catalyst, balance sheet capacity, operating leverage), the order is unambiguous.

1. Intel. The only profile here with a genuine AI tailwind, $17.247 billion in cash, NVIDIA and Google ecosystem validation, and margin expansion alongside a structural mix shift into foundry.
2. HP. A disciplined operator with an FCF inflection and steady capital return, but no reinvention engine to anchor the next decade.
3. Xerox. A textbook pivot attempted from a Kodak-shaped balance sheet. Direction is correct, runway is short.

Long term, Wall Street keeps rewarding platform reinvention over hardware nostalgia. The decade-long tape says the same: Intel up 291.8% over a decade, HP up 86.6%, and Xerox down 86.7%. Same battlefield, three very different futures.

The post HP, Intel, and Xerox Are All Chasing the Same Comeback. History Says Only One Survives appeared first on 24/7 Wall St..

This article will be updated throughout the day, so check back often for more daily updates. 

The Nasdaq Composite is kicking off June on a cautious note, with futures pointing modestly lower Monday morning. A fresh flare-up in Middle East tensions sent oil prices surging and offset what would otherwise be a straightforward tech-driven rally. Nasdaq-100 futures slipped 0.2%, S&P 500 futures dipped 0.1%, and Dow futures shed 17 points, or 0.03%, as traders weighed a complicated geopolitical backdrop against a market that closed May in record territory.

Oil is the session’s loudest variable, with WTI crude futures jumping 5% to around $91 a barrel and Brent climbing 4% to near $95, reversing course after the U.S. benchmark posted its steepest monthly decline since April 2025, tumbling nearly 17% in May. The catalyst is hard to ignore: Iranian state media reported the country’s negotiators are cutting off communications with the U.S. following Israeli attacks on Lebanon, while U.S. Central Command confirmed American forces intercepted two Iranian ballistic missiles overnight that were targeting U.S. troops in Kuwait.

Here’s a look at where things stand as of morning trading:

Dow Jones Industrial Average: 50,896 Down 0.27%
Nasdaq Composite: 27,016 Up 0.13%
S&P 500: 7,581 Up Up 0.05%

Market Movers

Nvidia (NASDAQ:NVDA) is making its move into the consumer PC chip market with the launch of RTX Spark, an Arm-based CPU/GPU/AI chip designed for Windows laptops and mini-PCs. The flagship configuration packs 20 CPU cores, 6,144 GPU cores, and up to 128GB of unified LPDDR5X memory, targeting local AI agents, creators, developers, and gamers. The rollout already has significant industry backing, with more than 30 laptops and 10 desktops in development across a partner list that includes Microsoft, Dell, HP, Asus, Lenovo, MSI, Acer, and Gigabyte, signaling that Nvidia’s ambitions well beyond the data center are very much underway.

Michael Saylor’s Strategy (Nasdaq: MSTR) unloaded 32 Bitcoin’s last week, generating proceeds of $2.5 million.

Honeywell’s (NASDAQ: HON) quantum computing unit Quantinuum is aiming higher ahead of its public debut, seeking up to $1.46 billion in its upcoming IPO, a significant step up from the prior $1.05 billion target. The upsized raise signals growing investor appetite for quantum computing exposure as the sector attracts increasing attention from both institutional money and the broader market.

CoreWeave (NASDAQ:CRWV) has become the first AI cloud provider to successfully bring up and validate Nvidia’s Vera Rubin NVL72 on its platform, a milestone that puts the company at the front of the line for one of Nvidia’s most advanced AI systems.

Dell Technologies (NYSE:DELL) is up more than 1% and HP (NYSE:HPQ) is gaining around 4% in the company’s wake. Intel (NASDAQ:INTC), which has long held dominance in the PC chip market, is on the other side of the trade, falling more than 6% as Nvidia’s entrance into its territory sharpens the competitive threat.

The post Live Nasdaq Composite: Markets Open June With Caution as Oil Spikes and Nvidia Powers Tech Higher appeared first on 24/7 Wall St..

The headline performance data rolling across trading desks on Friday afternoon looks almost too clean to be real. The benchmark S&P 500 extended its massive winning streak to eight consecutive weeks as ten of the eleven market sectors finished cleanly in positive territory, with healthcare leading the charge. CNBC’s Julia Boorstin framed it cleanly on Friday’s broadcast: “The S and P posting its eighth straight winning week, that win streak coming despite volatility throughout the week in oil prices and treasury yields.”

The sheer underlying breadth of this market expansion is becoming the real story for institutional investors. Dangerous rallies led exclusively by a handful of over-allocated tech names are notoriously fragile over the long run. Broad participation across consumer cyclicals, defensive value sectors, and technology names within the same week typically precedes further equity continuation rather than an immediate reversal. The fact that this broad market surge occurred with West Texas Intermediate crude oil pushing toward ninety-seven dollars a barrel and the benchmark ten-year Treasury yield holding firm near five percent makes the entire upward trajectory look vastly more impressive to observers.

Breadth, Volatility, and the Macro Backdrop

Implied volatility measures show that the broader options market is cooperating beautifully with this ongoing equity rally. The VIX closed at 16.76 on May 21, down 14% over the past month and well below its 12-month average of 18.2. That structural drop matters because the index peaked above 31 in late March, and sustained institutional de-risking from that elevated level usually signals a powerful, long-term improvement in global market sentiment.

The main underlying counterweight to this bullish momentum is that the University of Michigan Consumer Sentiment Index dropped sharply to 49.8 in April, well below the traditional 60 recessionary threshold. Equities are aggressively rallying, with regular everyday consumers currently sitting at their gloomiest sentiment level in a full year. That deep ongoing tension between Wall Street and Main Street represents the real systemic risk to monitor moving forward.

Dell Leads the AI Hardware Trade

Boorstin called out the standout move: “A trio of tech stocks, HP, Dell, and Qualcomm, all posting double-digit gains. Dell led the way up 17% following better-than-expected earnings from competitor Lenovo.” Dell Technologies (NYSE:DELL) finished Friday at $295.19, up 17% on the day and 168% over the past year.

Dell’s Q4 FY26 report in February delivered revenue of $33.38 billion, up 40% year over year, with non-GAAP EPS of $3.89 versus a $3.51 estimate. The real number was AI infrastructure: $8.95 billion in AI-optimized server revenue in Q4 alone, up 342% YoY, with $64 billion in FY26 AI server orders and a $43 billion backlog entering FY27. Management guided FY27 revenue to $140 billion at midpoint, up 23%, with AI servers roughly doubling to $50 billion.

HP’s AI PC Cycle

HP (NYSE:HPQ) closed at $25.24, up 15% Friday and 21% on the week. Q1 FY26 results in February showed Personal Systems revenue of $10.25 billion, up 11% YoY, with Consumer PS up 16%. Interim CEO Bruce Broussard credited “continued momentum in AI PCs”. The Windows 11 refresh cycle is translating into hardware demand.

Qualcomm’s Data Center Pivot

Qualcomm (NASDAQ:QCOM) closed at $238.16, up 12% Friday and 65% over the past year. Handsets dragged Q2 FY26, but Automotive revenue hit a record $1.33 billion, up 38%, while IoT grew 9%. CEO Cristiano Amon flagged the bigger pivot: “We are equally excited by our entry into the data center, where a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.” The June 24 Investor Day on Data Center and Physical AI is the next catalyst.

Take-Two: Where Investors Are Discriminating

The counterpoint mattered as Take-Two Interactive (NASDAQ:TTWO) closed at $227.55, down 4% Friday and 6% on the week. Boorstin noted the setup: “Take-Two Interactive reaffirmed that his blockbuster game, Grand Theft Auto Six, is still on pace to be released in November, but the company also issued cautious guidance that took the stock down 5%.”

FY27 guidance came in workable but uninspiring: Net Bookings of $8.0 to $8.2 billion and GAAP diluted EPS of $0.55 to $0.75. CEO Strauss Zelnick anchored the thesis on the November 19, 2026, launch of Grand Theft Auto VI. Reddit retail showed the split, with wallstreetbets threads explicitly arguing GTA 6 is “already priced in”.

What to Watch Next

The overarching market setup heading into June looks highly constructive but remains entirely conditional on upcoming data. Three major variables to track include whether the benchmark 10-year yield holds safely below its May 19 peak of 4.67%, whether consumer sentiment stabilizes above the April low, and whether massive AI hardware orders successfully convert into forward guidance updates from tech giants. Broad equity rallies tend to persist when actual corporate earnings catch up to price levels. The upcoming quarter will conclusively tell us if they do.

The post 10 of 11 Sectors Higher: Why the S&P’s Rally Looks Healthier Than the Headlines Suggest appeared first on 24/7 Wall St..

All the Magnificent 7 stocks that absolutely ruled the S&P 500 for three years are down in 2026, and with their decline, a tidy $ 2.1 trillion in market capitalization has been removed and is gone with the wind. Now, don’t think for a moment that most, if not all, will be back at some point this year, but one thing is for sure. Old-school legacy dividend tech stocks may be the best total-return idea for the final three quarters of 2026, as most mature tech companies have transformed from growth stories into cash-generating machines. After decades of dominance, they’ve built durable revenue streams from enterprise contracts, services, and infrastructure, which support consistent dividends regardless of market cycles.

After years of rate hikes, the top legacy technology stocks got beaten down alongside the broader market. Now, many trade at low P/E multiples relative to their cash flow, meaning you’re getting more earnings per dollar invested than you would have in 2020 and 2021. This comes as the cash flows of many top Mag 7 companies are expected to plummet due to overspending on AI and data center growth. In addition, and especially for older growth and income investors, legacy tech stocks with enterprise software contracts, government relationships, and long-term service agreements give these top companies stickier revenue than consumer tech. In a slowing economy, that stability is valuable.

We decided to profile five legacy tech stocks, including those that pay among the highest dividends, which help deliver dependable passive income streams. All five are rated Buy at top Wall Street firms that we cover here at 24/7 Wall St.

Cisco Systems

Investors who bought shares of Cisco Systems (NASDAQ: CSCO) at the height of the dot-com bubble just broke even recently. The company designs and sells a range of technologies that power the internet, and it pays a solid 2% dividend. Cisco is integrating its product portfolios across networking, security, collaboration, applications, and cloud—the backbone of enterprise networking. Switching, routing, and security are not going away. It generates huge free cash flow, has been aggressively buying back shares, and the dividend is very well covered. Cisco is boring in the best possible way.

The company’s segments include:

• The Americas
• Europe, the Middle East, and Africa
• Asia Pacific, Japan, and China

Its Networking product category represents its core networking technologies, including switching, routing, wireless, fifth-generation (5G) silicon, optics, and compute products.

The Security product category comprises cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of meetings, collaboration devices, calling, contact center, and platform-as-a-service (CPaaS) offerings.

The Observability product category consists of its full-stack observability offerings.

Truist Financial has a Buy rating with a $94 target price.

HP

The name stands for the past and Hewlett-Packard, two legacy tech giants who ruled Silicon Valley 50 years ago. HP (NYSE: HPQ) is a global provider of sustainable devices, services, and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming, and other related technologies. The dividend yield of 6.08% is very attractive, and the payout is conservative relative to free cash flow.

HP is often overlooked because printers feel like a dying business, but its ink and toner subscription model (Instant Ink) generates recurring revenue that holds up surprisingly well. PCs are cyclical, but HP manages costs tightly. The company’s segments include:

• Personal Systems
• Printing
• Corporate Investments

The Personal Systems segment offers desktops, notebooks, and workstations, thin clients, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions, including endpoint security, and services.

Its Printing segment provides consumer and commercial printer hardware, supplies, services, and solutions. Printing is also focused on graphics, 3D printing, and personalization in the commercial and industrial markets.

The Corporate Investments segment includes certain business incubation and investment projects. Its security solutions provide layered resiliency through features such as containment and isolation technology, as well as deep learning and artificial intelligence (AI).

HSBC has a Buy rating with a $26.40 price objective.

IBM

Also known as Big Blue, International Business Machines (NYSE: IBM) ruled the technology universe for decades and has fought its way back into the game. IBM is a provider of global hybrid cloud and AI consulting expertise that reinvented itself around hybrid cloud (the Red Hat acquisition) and AI consulting. The legacy stigma keeps the valuation low, but the business is more durable than its reputation suggests. The company pays a solid 2.78% dividend with decades of history behind it.

IBM’s segments include:

• Software, which includes hybrid cloud and AI platforms that enable clients to realize their digital and AI transformations across their applications, data, and environments.
• Consulting focuses on integrating skills in strategy, experience, technology, and operations across domains and industries.
• Infrastructure is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment.
• Financing provides client and commercial financing, facilitating its clients’ acquisition of hardware, software, and services. It helps clients in more than 175 countries.

Wedbush has an Outperform rating with a $340 target price.

Qualcomm

Qualcomm (NASDAQ: QCOM) has struggled over the past few months and may offer the best upside potential, along with a 2.77% dividend yield. This company is engaged in the development and commercialization of foundational technologies for the wireless industry, including third-generation (3G), fourth-generation (4G), and fifth-generation (5G) wireless connectivity, as well as high-performance and low-power computing, including on-device artificial intelligence.

Often thought of as a pure smartphone chip play, Qualcomm has been quietly diversifying into automotive, IoT, and PC silicon. It trades at a modest multiple, yields around 2% to 3%, and generates enormous free cash flow. The licensing business alone is a near-monopoly cash machine that comfortably funds the dividend.

Its segments include:

• Qualcomm CDMA Technologies (QCT)
• Qualcomm Technology Licensing (QTL)
• Qualcomm Strategic Initiatives

QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit, and advanced driver assistance and automated driving, Internet of Things, including consumer electronic devices, industrial devices, and edge networking products.

QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products

Loop Capital has a Buy rating with a $185 target price.

Texas Instruments

The company that brought the technology for the first electronic calculators in the 1960s offers a 2.83% dividend. Texas Instruments (NASDAQ: TXN) is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment, and enterprise systems.

Analog and embedded chips are about as unglamorous as it gets in tech, and that’s exactly the point. TI’s chips go into industrial equipment, automotive systems, and appliances, giving it sticky, diversified demand. The company has raised its dividend for 20+ consecutive years and is obsessive about generating free cash flow.

Its Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its portfolio is designed to manage power requirements across different voltage levels, including:

• Battery management solutions
• DC/DC switching regulators
• AC/DC and isolated DC/DC switching regulators
• Power switches, linear and low-dropout regulators, voltage references, and more.

Signal Chain includes products that sense, condition, and measure real-world signals, enabling information to be transferred or converted for further processing and control.

The Embedded Processing segment includes microcontrollers, digital signal processors, and application processors.

Rosenblatt Securities has a Buy rating with a $240 target price.

The post 5 Forgotten Old-School Tech Dividend Stocks That Could Crush the Market in 2026 appeared first on 24/7 Wall St..

HP Inc (NYSE:HPQ) beat Q1 FY2026 estimates on both the top and bottom lines, yet shares have lost 31% over the past year and trade near their 52-week low of $17.56. Meanwhile, Reddit sentiment scores have settled in the 22-28 range, with 70% of records classified as bearish. AI PC momentum is real, but memory costs are absorbing the gains.

HP posted Q1 revenue of $14.44 billion, up 6.9% year over year, and non-GAAP EPS of $0.81 against a $0.77 estimate. Personal Systems revenue rose 11% to $10.25 billion, with AI PCs now accounting for more than 35% of total PC shipments. Gross profit was essentially flat, down 0.18% year over year, and operating income fell 10.18% despite that revenue growth. Management guided full-year non-GAAP EPS to the low end of $2.90 to $3.20 and flagged a double-digit decline in PC unit shipments for 2026.

Reddit’s Read on HP’s Memory Cost Problem

Discussion across r/wallstreetbets, r/investing, and r/stocks picked up sharply around the earnings release, with the peak engagement window logging 1,539 upvotes and 418 comments. Users are not dismissing the AI PC story but are focused on whether HP can translate unit growth into margin recovery while memory prices stay elevated. A thread in r/technology captured the concern, with one commenter noting: “It means your RAM is less stringently quality tested, which is bad. They also reduced shipping costs, which is good. I call it frogurt.”

RAM now represents 35 percent of bill of materials for HP…
by u/Gioware in r/technology

The bearish case centers on three issues:

• HP’s finance chief warned that memory cost volatility is expected to persist even into next year, with no near-term relief for a cost that now dominates the bill of materials.
• Printing revenue fell 2% year over year in Q1, with consumer printing down 8%, removing a historically stable margin contributor.
• Management guided PC unit shipments to a double-digit percentage decline for 2026, meaning AI PC mix gains must offset both volume pressure and cost inflation simultaneously.

HP at $19: What the Numbers Actually Say

As it stands today, HP trades at a trailing P/E of 7x and yields roughly 6.3%, with insider activity trending toward net buying across 14 recent transactions. Analysts are split: 3 buys, 8 holds, and 3 underperforms, with a consensus target near $19.43. Dell (NYSE:DELL) faces the same memory cost headwinds and AI PC transition dynamics, framing the margin pressure as an industry-wide constraint. Q2 FY2026 results will be the next test, with HP guiding non-GAAP EPS of $0.70 to $0.76, a sequential step down from Q1.

The post HP Shares Are Down 31% Over the Past Year Despite a Revenue Beat appeared first on 24/7 Wall St..

Still a giant in its field, GE Aerospace (NYSE:GE) shares are down nearly 14% over the past month and nearly 5% year to date, even as the business posts some of its strongest results in years. Reddit sentiment on GE sits at 22 to 28, firmly bearish, driven not by earnings disappointment but by a geopolitical threat that landed GE on an unwelcome list. The stock recovered about 4% on April 1, trading near $295, but the one-month drawdown reflects how quickly macro risk can overshadow fundamental strength.

The business itself tells a different story as Q4 2025 revenue came in at $12.72 billion, well ahead of estimates, while full-year free cash flow doubled to $7.694 billion. GE Aerospace’s $190 billion backlog and 2026 EPS guidance of $7.10 to $7.40 suggest the aftermarket engine is still running hot.

IRGC Threat Pulls GE Into a Geopolitical Storm

The catalyst for the bearish Reddit spike was a post by u/Playwithuh in r/wallstreetbets that accumulated nearly 2,000 upvotes and 323 comments:

IRGC threatens strikes on US tech giants across the Middle East
by u/Playwithuh in r/wallstreetbets

“The Islamic Revolutionary Guard Corps (IRGC) has threatened to strike 18 US technology and defense-related companies operating in the Middle East… The IRGC named companies including Cisco, HP, Intel, Oracle, Microsoft, Apple, Google, Meta, IBM, Dell, Nvidia, Tesla, GE, JPMorgan, and Boeing, among others, as potential targets.” The same post appeared in r/stocks, generating 673 upvotes and 166 comments. Peak activity hit on Tuesday, March 31 at noon ET, with 1,549 upvotes and 422 comments across subreddits in a single hour.

Aftermarket Strength Meets a Skeptical Reddit

The dominant sentiment category is bearish, with scores clustering between 22 and 28 across r/wallstreetbets, r/stocks, and r/investing. The geopolitical noise is crowding out an otherwise constructive fundamental picture. Three reasons the skepticism has traction:

• CES margins compressed 420 basis points in Q4 from a lower spare engine ratio and higher install deliveries, raising questions about whether services’ profitability can hold as equipment mix shifts.
• GE Aerospace trades at a forward P/E of 44x, a steep premium that leaves little room for execution misses or macro shocks.
• Supply chain constraints remain an active risk, even as priority supplier material input rose more than 40% in 2025.

Capital Returns Signal Confidence

GE Aerospace raised its quarterly dividend to $0.47 in Q1 2026, up from $0.36 throughout 2025 and well above the $0.01 paid during the 2019 to 2020 distressed period. The $24 billion capital return program running through 2026, along with a target to return at least 70% of free cash flow beyond 2026, reflects management’s confidence in cash generation. With 17 of 19 analysts rating GE a buy or strong buy and a consensus target near $362, the Wall Street view diverges sharply from Reddit’s current mood. The geopolitical threat represents a near-term risk. The aftermarket services cycle remains the longer-term driver of the investment case.

The post GE Aerospace Is Down 14% This Month While Its $190 Billion Backlog Keeps Growing appeared first on 24/7 Wall St..

Dell Technologies (NYSE: DELL) and HP (NYSE: HPQ) are two legacy tech names that retirement investors have held for decades. Right now, they are not the same bet. One is riding the AI infrastructure wave; the other is fighting margin compression in a declining print market. Here is how they compare across the dimensions that matter most.

Growth Trajectory

Dell’s AI server business generated nearly $10 billion in revenue in FY2025. Management has guided for at least $15 billion in AI server shipments in FY2026, a target CEO Jeff Clarke stated the company had already locked in as of day 27 of the fiscal year. The AI backlog stood at roughly $9 billion as of February. Total FY2025 revenue came in at $95.6 billion, up 8%, with quarterly earnings growth of 45.4% year over year and quarterly revenue growth of 39.5% year over year.

HP’s story is more complicated. Personal Systems revenue grew 11% year over year in Q1 FY2026, driven by AI PC momentum, with AI PCs now representing roughly 35% of shipments. But the printing segment (which accounts for a meaningful share of HP’s revenue) declined 2% year over year in the most recent quarter and has been contracting for several consecutive quarters. Full-year FY2025 operating income fell 16.87% year over year.

Winner: Dell.

Valuation

On the surface, HP trades at a trailing P/E of just 7x with a forward P/E of 7x, compared to Dell’s trailing P/E of 17x and forward P/E of 12x. HP’s price-to-sales ratio is just 0.31x versus Dell’s 0.90x.

But cheap multiples reflect real structural risk. HP carries a shareholders’ equity deficit of $766 million as of its most recent quarter. Memory costs (representing 15% to 18% of the cost of a typical PC) are rising sharply, with management quantifying a net FY2026 EPS headwind of $0.30 after mitigations. FY2026 guidance is expected to land at the lower end of the $2.90 to $3.20 non-GAAP EPS range. Dell’s PEG ratio of 0.6 suggests its higher multiple is supported by faster earnings growth.

Winner: Dell, on a growth-adjusted basis.

Yield and Income

This is where HP earns its keep for retirement portfolios. HP’s dividend yield stands at 6.2%, with a quarterly dividend of $0.30 per share. Dell’s yield is 1.4%, though it raised its annual dividend by 20% to $2.52 per share and added a $10 billion share repurchase authorization for FY2026. For investors who need current income, HP’s yield is meaningfully higher, but it comes attached to a business with declining profitability and rising cost headwinds.

Winner: HP, on yield alone.

Long-Term Track Record

Dell shares have gained 63.62% over the past year and 246.71% over five years. HP shares have lost 34.25% over the past year and 38.61% over five years. The divergence is not cyclical noise. It reflects two fundamentally different strategic positions in an AI-driven capital expenditure cycle.

Winner: Dell.

The Verdict

Dell has demonstrated stronger capital appreciation, AI server revenue growth, and earnings trajectory. Its AI server pipeline, enterprise data center exposure, and earnings growth trajectory are not matched by anything in HP’s current portfolio.

HP offers a higher dividend yield but has faced declining profitability and stock price losses over the past year and five years. The yield is real, but so are the headwinds from structural decline in print, margin pressure from rising memory costs, and negative shareholders’ equity.

The post Dell vs HP: 2 Legacy Tech Giants, 2 Very Different AI Bets appeared first on 24/7 Wall St..

Top-tier U.S. stocks with premier fundamentals and valuations that scream “buy” are hard to come by. When such stocks are discovered, they often skyrocket higher, and I’d argue that most companies that once were undervalued (that have the sort of balance sheets and growth prospects investors are looking for) don’t have valuations that beg investors to hit the bid. 

Indeed, the U.S. stock market is, by most measures, extremely expensive. Historically, stocks trading at these levels leave little room for significant upside over the course of the coming decade, so there’s plenty of healthy skepticism being baked into some top names right now. 

That said, I’d also argue that there are a few pockets of value investors can pursue to amplify their long-term returns. Here are three of my top picks as overlooked gems right now. 

Allstate (ALL)

A leading U.S. insurance giant, Allstate (NYSE:ALL) is among the leaders in providing coverage across most major insurance categories. From property and casualty insurance products to a range of insurance products including auto, homeowners, and commercial coverage, Allstate serves millions of customers (primarily in the U.S.) under its Allstate Protection and Esurance banners. 

I think many in the market may have given up on Allstate, given the fact that ALL stock is currently roughly flat over the course of the past year. Many companies in the financials industry have risen considerably over this time frame, for a number of key reasons. From a steepening yield curve (making the long-duration portfolios of insurance companies like Allstate more attractive) to an increasingly prescient flight-to-safety trade building in the market, I would have thought Allstate would have seen a bigger bump by now.

That hasn’t been the case. In fact, this stock has remained depressed, with a trailing price-earnings ratio around 5-times. That’s hard to find in this market, and makes Allstate among the cheapest large-cap stocks in the market (that is investment worthy) in my books.

With top-line revenue growth of 12% last year and expanding operating margins, this is a stock I think could have big upside in 2026 and beyond. Those thinking long-term may want to consider accumulating some ALL stock on this dip, and continue doing so for some time. I am. 

Synchrony Financial (SYF)

Along the same lines, and a key player in the financials space, Synchrony Financial (NYSE:SYF) is another stock I think is widely overlooked by most market participants. 

Why, you might ask? Well, Synchrony Financial also has a similarly-cheap valuation multiple, trading at less than 7-times earnings. And like Allstate, the consumer finance giant saw meaningful earnings growth of around 3% last year, with net income coming in around $4.5 billion. That’s impressive, considering this stock trades at a valuation of just $23 billion. 

With operating margins around 28% and efficient funding costs, the outlook for this store card and personal loan issuer remains strong. Of course, there are concerns that more “cockroaches” (Jamie Dimon’s term, not mine) may be proliferating in the consumer lending and private credit sectors. That’s something I do think we’ll see play out. 

But in terms of companies that have both the staying power and balance sheets to weather whatever could be ahead, SYF stock looks like a very reasonably-priced bet worth making right now. 

HP Inc. (HPQ)

Finally, we come to personal computer and printer company HP Inc. (NYSE:HPQ).

I know, this isn’t the “sexiest” of companies in the most attractive of industries. That’s for sure. However, HP is also a stock I think is criminally undervalued, trading at just 7-times earnings with a whopping 6.5% dividend yield. 

That’s definitely hard to find in this market, particularly among companies with notable brands most consumers can recognize. I haven’t personally owned an HP laptop in some time, but that was my go-to in college, as I’m sure many can relate. And with a still-robust brand, strong differentiation between HP and its competitors, and a real value offering in this sector, I think the company’s underlying fundamentals support a much higher valuation. 

Impressively, HP was able to grow its revenue by 4% this past quarter on a year-over-year basis, with operating margins improving considerably (by 130 basis points). Additionally, free cash flow hit $1.1 billion, and the company did announce buybacks on these results. Despite this fact, the stock is down more than 30% this year, and has a tremendous amount of negative momentum.

That may be scary for some investors to buy into, and I get that. But in terms of real value in this market, I think HP is one company that’s worth considering as a small portfolio position today. 

The post 3 Overlooked U.S. Value Stocks With the Fundamentals to Outperform in 2026 appeared first on 24/7 Wall St..

HP Inc. (NYSE:HPQ) reported after the bell on Feb. 24, and the stock initially dipped to around $16.91 in the hour after filing before recovering. Shares were last trading at $18.20.

AI PCs Lead, Margins Lag

The headline numbers were solid. HP posted non-GAAP EPS of 81 cents versus the 77-cent consensus — a beat of about 5% and up 9.5% from the year-ago period. Revenue of $14.44 billion came in roughly $500 million above estimates, growing 6.9% year over year. Personal Systems was the engine: AI PCs reached 35% of total PC shipments in Q1, up from 30% the prior quarter, pushing segment revenue to $10.25 billion, up 11% year over year. Consumer was the standout within that, up 16%.

Margin pressure showed up as expected. Operating income fell 10.2% year over year to $759 million even as revenue grew. The culprit: DRAM and NAND prices rose roughly 100% sequentially, pushing memory and storage costs from 15-18% to approximately 35% of PC bill of materials. Printing continued its structural slide, with revenue down 2% and hardware units down 6%.

Guidance Holds the Range, But Management Signals the Low End

Interim CEO Bruce Broussard kept the tone measured. “We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs. Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds,” Broussard said.

HP maintained its full-year non-GAAP EPS range of $2.90 to $3.20 but explicitly guided toward the low end. Q2 non-GAAP EPS is projected at $0.70 to $0.76, a sequential step down from Q1’s $0.81. Management is pursuing a three-pronged mitigation plan: long-term supplier agreements for memory, expanded lower-cost sourcing, and targeted pricing actions, targeting $1 billion in gross run-rate savings by FY2028.

What to Watch From Here

The beat was real, but the market’s muted initial reaction mirrors November’s earnings, when HP also beat and the stock still declined. With shares already down 18% year to date and trading well below its 200-day moving average of $25.02, the path forward depends on whether memory cost pressures stabilize and AI PC demand holds.

Analyst price targets average $22.96, above the current trading price of $18.20. HP guided toward the low end of its full-year EPS range, citing ongoing memory cost headwinds as a key variable for the remainder of the fiscal year.

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HP Inc. (NYSE: HPQ) reports its fiscal first-quarter 2026 results today after the close. With the stock down nearly 17% year-to-date and sitting near its 52-week low of $18.12, the pressure on management to deliver is real.

A Stock Under Pressure, A Business in Transition

Last quarter, HP closed out fiscal 2025 on a strong note. Revenue came in at $14.64billion, beating the $14.49 billion consensus by a meaningful margin and growing 4% year over year. Non-GAAP EPS of $0.93 just pasted expectations of $0.92. Personal Systems was the clear engine, with revenue up 8% on increased average selling prices and 7% unit growth. Printing continued its slide, falling 4% year over year.

Since that November report, the stock initially rallied, gaining nearly 12% in the week following results, before giving back all of those gains and then some. The market’s concern centers on two issues that have grown louder heading into today: memory cost inflation and the durability of the PC refresh cycle.

Management flagged the memory headwind explicitly on the Q4 call. CFO Karen Parkhill estimated a 30-cent impact from projected memory cost increases, net of mitigations, baked into full-year guidance. CEO Enrique Lores noted that memory costs now represent 15% to 18% of the cost of a typical PC, and that the pace of increases had accelerated in recent weeks.

Consensus Estimates

Memory Costs, Margins, and the AI PC Offset

This is the quarter where execution matters more than narrative. I’ll be watching gross margin closely. With memory costs accelerating further into Q1, a margin squeeze could deepen.

Management outlined several mitigation strategies, including qualifying lower-cost suppliers, redesigning the portfolio for reduced memory configurations, and raising prices in coordination with channel partners. How much of that is showing up in Q1 results will be a key signal for whether the full-year guidance range of $2.90 to $3.20 in non-GAAP EPS is achievable.

On the demand side, you should watch AIPC momentum. AIPCs represented more than 30% of shipments in Q4, and management expects that to reach 40% to 50% in fiscal 2026. The Windows 11 refresh remains a real tailwind. About 60% of the installed base have been converted at the end of Q4, with the biggest remaining opportunity in SMB customers and markets outside North America.

Printing will stay in the background, but watch supplies revenue. Supplies declined 3% year over year in constant currency in Q4, and management guided for continued low single-digit declines in fiscal 2026. Any acceleration in that decline would put pressure on the Print segment’s 18.9% operating margin, which has been a reliable profit contributor even as hardware volumes shrink.

Wall Street’s posture is cautious. Of 17 analysts covering the stock, 10 rate it a hold, 3 a sell, and 1 a strong sell, with an average price target of $23.21. Morgan Stanley and Bank of America both carry sell ratings with $18 price targets.

More Than a Single Quarter Print

HP’s Investor Day is scheduled for April 23, where management plans to lay out how AI is transforming the business. Today’s results set the credibility baseline for that conversation. If HP can show it is managing memory headwinds without sacrificing free cash flow, and that AIPC demand is accelerating as guided, the April event could shift the narrative for a stock that has lost significant ground over the past year.

The post HP Inc. Earnings Preview: What Wall Street Is Watching appeared first on 24/7 Wall St..

If you have been closely watching shares of PayPal (NASDAQ:PYPL), you haven’t missed its 30.7% collapse year-to-date, with retail investor sentiment on Reddit turning sharply bearish. The fintech pioneer’s weekly sentiment score plunged to 37, down from a neutral 57.4 over the past month, as traders digested a brutal earnings miss and disappointing 2026 guidance. PayPal now trades at just $40.46, down 46.79% over the past year and hovering near its 52-week low of $38.88.

The catalyst for this meltdown was PayPal’s Q4 2025 earnings release on February 3, 2026, where the company reported revenue of $8.676 billion, missing estimates by $304 million, and EPS of $1.23, falling $0.08 short of consensus. The same day, PayPal announced Enrique Lores would replace outgoing CEO Alex Chriss, effective March 1, 2026, after the board expressed dissatisfaction with the “pace of change and execution.” The hope is that bringing fresh faces to the highest levels will energize the company and investors for the future. 

Reddit Turns on PayPal After Execution Failures

On the other hand, online discussion has turned decisively negative. The most upvoted post on r/wallstreetbets declared “PayPal shares CLOBBERED in premarket” with 5,919 upvotes and 804 comments. Traders are citing legitimate concerns about PayPal’s competitive position and execution. The reasons for pessimism are stark:

• Branded checkout performance deteriorated, with management admitting execution “has not been where it needs to be”
• Former PayPal President David Marcus criticized the company’s defensive BNPL strategy, which handed market share to Klarna and Affirm (NASDAQ:AFRM)
• Daiwa Securities slashed its price target from $61 to $42, a 31% cut reflecting dimmed expectations

Can Lores and Automotive Payments Save PayPal?

PayPal is betting on two lifelines. The first is Lores, who delivered six consecutive quarters of revenue growth at HP (NYSE:HPQ), raising expectations for his March start date. The second is integration into UpdatePromise’s automotive service platform, embedding PayPal and Venmo into repair workflows. Analysts still see upside, with a consensus target of $51.88 implying 27% gains. But with PayPal trading at a 7.48x P/E and generating over $6 billion in expected free cash flow for 2026, this may be the last chance to prove the turnaround thesis before patience runs out.

The post PayPal Stock Falls 31% as New CEO Inherits Execution Crisis appeared first on 24/7 Wall St..

What does a successful retirement look like? If it means financial security through steady income sources, then you can get there with the help of high-yield dividend stocks.

Since retirement is supposed to be a marathon and not a sprint, today we’ll be on the lookout for crown jewel dividend stocks — the best of the best, not the also-rans. The yields should be fairly attractive, but the primary emphasis ought to be on high-quality companies.

Thus, we’re finding businesses with solid financials, industry leadership, and name recognition so you can invest with confidence. Along with that, the following three stock picks represent companies that deliver regular dividend distributions, which you can collect and reinvest throughout your retirement years.

Pfizer (PFE)

We’ll launch our foray into high-yield retirement stocks with Pfizer (NYSE:PFE), a giant among U.S. drugmakers. Pfizer remains on the cutting edge of pharmaceutical science and strives to stay ahead of medical trends with continuous research and development. 

The key to building out a list of dividend stocks for retirees and near-retirees is to check under the hood: what are the company’s financials? As it turns out, the data shows that Pfizer is on solid financial ground and appears to be in growth mode.

Specifically, Pfizer’s fourth-quarter 2025 adjusted income grew 5% year over year to $3.786 billion. Also, taking a look at the bigger picture, Pfizer’s full-year 2025 adjusted income increased 4% year over year to $18.406 billion.

There’s hardly any doubt, then, that Pfizer can afford to pay out its dividend distributions. Furthermore, it’s encouraging to discover that Pfizer has a 15-year track record of dividend growth. 

Speaking of dividends, it might be difficult to resist buying PFE stock since Pfizer currently offers a forward annual dividend yield of 6.49%. But then, retirees don’t have to resist the urge to purchase Pfizer shares if their objective is relatively low-risk passive income.

In the final analysis, there’s nothing objectionable about Pfizer stock as an investable asset for retirement. So now, we’ll diversify beyond the pharmaceutical sector into other fields to pick out two more dividend-yielding picks.

HP Inc. (HPQ)

Today’s retirees don’t need to be experts in the latest technology trends just to make money in long-term tech investments. In actuality, there’s a perfect pick in a computer maker that’s been around for a long time: HP Inc. (NYSE:HPQ).

It may surprise you to observe HP Inc.’s staying power as a technology hardware business in the 2020s. In fiscal 2025, HP Inc.’s GAAP-measured net revenue grew 3.2% year over year to an impressive $55.3 billion.

That’s right — HP Inc. is still a big company with a strong niche-market presence. To provide recent support for this point, HP Inc. increased its Q4 fiscal 2025 GAAP net revenue by 4.2% year over year to $14.6 billion.

Additionally, HP Inc. likes to reward its loyal shareholders as the company has hiked its dividend distributions for nine consecutive years. At the moment, the annual dividend yield for HPQ stock is quite enticing at 6.27%.

Once again, retirees can feel more secure by owning shares of famous, familiar names and HP Inc. is a perfect example of this. It just goes to show that technology-sector investing doesn’t have to be intimidating regardless of your age or skill level.

Verizon (VZ)

Wrapping it up with a pick in the telecommunications sector, Verizon Communications (NYSE:VZ) is a widely familiar name with an established market presence. Does Verizon pass the financial stability test, though? Remember, it’s always important to learn about a company before you consider buying shares.

Here’s the rundown on Verizon’s full-year 2025 performance. The company’s total operating revenue expanded 2.5% to $138.2 billion, versus $134.8 billion in 2024. Plus, Verizon’s cash flow from operating activities improved slightly, from $36.9 billion in 2024 to $37.1 billion in 2025.

It’s not about blockbuster growth or mind-blowing numbers when you’re at or near retirement. Verizon is a rock-solid company and VZ stock should be viewed as a “steady Eddie” type of asset that can be confidently held for years.

Here’s where Verizon stock really stands out above the pack, though. Right now, Verizon pays a forward annual dividend yield of 6.01%, which is high for a blue-chip stock. Incidentally, Verizon has been growing its dividends for 21 years — not too shabby, you must admit.

Like PFE and HPQ, VZ stock can add stability to your portfolio as these assets tend to gain value over the long term. Along with that, retirees can simply buy and hold these three stocks, reinvest the periodically paid dividends, and enjoy the wealth-compounding effects over time. 

The post 3 High-Yield Dividend Stocks Perfect For Retirees appeared first on 24/7 Wall St..

PayPal Holdings (NASDAQ:PYPL) just did something nearly unheard of in Silicon Valley: it poached a sitting CEO from another public company. Enrique Lores, who led HP Inc (NYSE:HPQ) through six consecutive quarters of revenue growth, is now PayPal’s new chief executive as of February 3, 2026. This wasn’t a quiet retirement transition or a graceful succession plan. This was a raid.

Here’s what makes this move fascinating: HP is letting go of a CEO who just delivered a beat on Q4 2025 revenue at $14.64 billion versus consensus of $14.06 billion. Under Lores, HP’s Personal Systems segment grew 8% year-over-year in that quarter. Yet HP stock has cratered 36% over the past year and sits 11% below where it started 2026. That disconnect tells you everything: Lores was executing, but the market stopped believing in HP’s future.

PayPal, meanwhile, is bleeding. The stock has dropped 41% over the past year despite consistently beating earnings estimates. As we noted in today’s Daily Profit newsletter when covering semiconductor sector earnings volatility, execution beats don’t always translate to stock performance when investors lose faith in the business model. Interim CEO Jamie Miller admitted in their latest filing that “execution has not been where it needs to be, particularly in branded checkout.” That’s corporate-speak for “we’re losing to competitors.”

The strategic question is what HP’s board knows that the market doesn’t. They’re releasing a CEO who delivered operational wins but couldn’t reverse structural decline in a legacy hardware business. PayPal is betting Lores can do for fintech what he couldn’t finish at HP: modernize a mature business model before it becomes irrelevant. Watch how Lores addresses PayPal’s branded checkout struggles in his first 90 days. If he can’t articulate a credible AI-driven payments strategy by mid-2026, this expensive hire will look like desperation rather than vision.

The post PayPal Poaches HP’s CEO in Rare Tech Leadership Raid – What HP Knows That We Don’t appeared first on 24/7 Wall St..

Pre-Market Stock Futures:

The futures are trading higher as we get set to close out the week on a possible winning note, after a massive bounce-back rally on Thursday that saw all the major indices surge higher. The combination of a stiff 2-day sell-off, positive economic data showing inflation steady and trending lower this week, big earnings reports from Goldman Sachs Group (NYSE: GS) and Morgan Stanley (NYSE: MS), which both blew out their fourth-quarter results, and some very positive labor market updates all helped to ignite the big move higher on Thursday. The Dow Jones Industrials led the way higher, closing up 0.60% at 49,442, while the S&P 500 closed at 6,944, up 0.26%. The tech-heavy Nasdaq finished the session up 0.25% at 23,530. The big winner once again was the Russell 2000, which ended the day up 0.86% at 2674. The index that tracks small-cap stocks is now up 7.26% on the year, crushing the other indices.

Treasury Bonds:

Yields were up across the Treasury curve as sellers returned on Thursday. After the positive inflation reports this week, which sparked a buying surge, the labor market news, and the cooling of geopolitical issues around the globe, contributed to selling, as interest rate cuts, which some thought could come in March, may be pushed out to June. The 30-year long bond closed the day at 4.80%, while the benchmark 10-year note was last seen at 4.17%

Oil and Gas:

Prices across the energy complex were hammered on Thursday as both of the primary benchmarks closed down over 4%, ending a five-day winning streak for the black gold. The combination of President Trump dialing back the aggressive military rhetoric towards Iran and the recent return of concerns about oversupply was among the main reasons for the meltdown. The last trade for Brent Crude was reported at $63.78, down 4.12%, while West Texas Intermediate closed at $59.28, down 4.42%. Natural gas eked out a small gain, closing at $3.14, up 0.74%.

Gold:

Gold took a short breather from the inexorable climb higher it’s been over the last year, closing the session down 0.24% at $4,615. Traders largely chalked up the pause to profit-taking, but did cite the cooling of geopolitical tensions as another factor. Silver, which has made its own parabolic move higher over the last year, closed down 0.84% at $92.29. Traders mentioned that Silver will likely not be included on the critical minerals tariff list, at least for now.

Crypto:

The crypto market paused its recent rally on Thursday and experienced a downturn, primarily driven by news that a key US Senate crypto bill was postponed due to a lack of industry support, notably from Coinbase. After a breakout earlier in the week that saw it approach $100,000, Bitcoin fell below $96,000 during U.S. morning trading on Thursday, down over 1%. It has continued to hold key support levels above $94,500. At 8A EST, Bitcoin was trading at $95,357, while Ethereum was quoted at $3,304. 

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Friday, January 16, 2026. 

Upgrades:

• Garmin Ltd. (NYSE: GRMN) was upgraded to Equal Weight from Underweight at Barclays, which bumped the target price to $217 from $208.
• Honeywell International Inc.  (NYSE: HON) was upgraded to Overweight from Neutral at JPMorgan, which lifted the target price for the stock to $255 from $218.
• PepsiCo Inc. (NYSE: PEP) was raised to Outperform from Neutral at BNP Paribas with a $179 target price.
• Rocket Lab Corp. (NASDAQ: RKLB) was upgraded to Overweight from Equal Weight at Morgan Stanley, which boosted the target price to $105 from $67.
• Seagate Technology Holdings plc (NASDAQ: STX) was raised to Neutral from Negative at Susquehanna, which raised the target price for the stock to $280 from $150.

Downgrades:

• ConocoPhillips (NYSE: COP) was downgraded to Underperform from Neutral at Bank of America with a $102 target price objective.
• Devon Energy Corp. (NYSE: DVN) was downgraded to Sector Perform from Outperform at Scotiabank with a $41 target price.
• HP Inc. (NYSE: HPQ) was cut to Underweight from Equal Weight at Barclays, which also dropped the target price to $18 from $24.
• Kraft Heinz Co. (NASDAQ: KHC) was downgraded to Underweight from Equal Weight at Morgan Stanley, which trimmed the target price for the shares to $24 from $27.
• MGM Resorts International (NYSE: MGM) Morgan Stanley cut the stock to Underweight from Equal Weight and lowered the target price to $33 from $40.

Initiations:

• Martin Marietta Materials Inc. (NYSE: MLM) was initiated with a Neutral rating at B. Riley with a $700 target price.
• Staar Surgical Co. (NASDAQ: STAA) was resumed in coverage with an Underweight rating at Morgan Stanley with a $13 target price.
• TFS Financial Corp. (NASDAQ: TSFL) was assumed in coverage at Piper Sandler with a Neutral rating and a $15 target price.
• Unity Software Inc. (NYSE: U) was started with a Buy rating at Freeedom Capital with a $52 target price.
• Vulcan Materials Inc. (NYSE: VMC) was initiated with a Buy rating by B. Riley with a $345 target price. 
  
  

The post Here Are Friday’s Top Wall Street Analyst Research Calls: ConocoPhillips, Devon Energy, Garmin, Honeywell, HP, PepsiCo, Rocket Labs, Seagate, and More appeared first on 24/7 Wall St..

You don’t have to settle for a moderate yield with moderate upside if you like dividend stocks. Verizon (NYSE:VZ), Hormel Foods (NYSE:HRL), and HP Inc (NYSE:HPQ) offer both a high yield and upside potential in the coming years and can greatly outperform the broader market. You can still buy stocks with a lower yield, but it’s worth keeping in mind that even a 4% yield is outclassed by Treasuries that yield over 4.8% while being risk-free.

At the same time, the market is littered with cash-rich companies that are going through a tough period. I argue these dividend stocks are bound to inevitably bounce back once the storm passes. You’ll be able to snag the dividend payouts plus the massive upside once that happens.

Let’s take a look.

Verizon (VZ)

Verizon is one of the most mispriced cash cows on the stock market today. It is one of the largest telecommunications businesses and has more than proved itself in the past few years. Telecom companies are usually debt-laden and were considered more on the discretionary side. However, Verizon managed to generate positive cash flow despite exceptional interest rates, increase its dividends, and keep its customer base steady.

In fact, customers have shown that their internet subscription is actually essential to them. They’re unlikely to go offline no matter how tough the economic situation is, and that makes Verizon a solid safe haven to buy into for a high and dependable yield.

VZ stock carries a 6.82% dividend yield today and trades at less than 9 times earnings. Sure, it has over $170 billion of total debt on its balance sheet, but pre-tax income of $26.2 billion over the past year is more than enough to service that debt and pay growing dividends.

Once interest rates look less scary, I expect VZ stock to make a full recovery and beyond, likely reaching $80.

Hormel Foods (HRL)

Hormel Foods has taken a beating over the past five years and is down 48.2% over that period. This company makes a variety of branded food products. While inflation initially helped it, the momentum has gone downhill since 2021.

Regardless, I now believe it is too cheap to ignore. HRL stock now comes with a dividend yield of over 5%. Better yet, dividends have been raised for 59 years consecutively. The payout ratio still leaves room for more modest increases.

I expect this cash cow business to do a lot better. EPS is expected to continue growing above a 6% clip in both FY 2026 and FY 2027, along with revenue growth above 2%. You may argue that the 16 times forward earnings premium is thus fair value for the stock, but I’d disagree. Such a low valuation would only be fair if HRL stock came with a lower yield and a more fickle cash flow.

I see the forward PE ratio climbing above 25x in the coming years as interest rates drop, allowing the yield to be appreciated more by the Street.

HP Inc (HPQ)

HP Inc. makes personal computers, printers, laptops, etc. It is not to be confused with HPE, which makes servers and storage. HPQ stock is down over 34% in the past year, and I believe it’s worth buying into the weakness now.

The company has solid, stable cash flow, with computer and printing businesses still being very lucrative and reliable. Component prices are explosive, but this isn’t a one-sided affair that many doom-and-gloom analysts expect will kill HP Inc. Instead, it could turn HPQ much hotter. Customers are willing to cover the cost of rising components. Plus, the company has strong links to enterprise clients who keep orders steady year after year.

As a result, EPS is expected to stay flat in FY 2026 and grow at a 4% clip in FY 2027, along with a modest sales increase below a 2% growth rate. These aren’t sexy figures, but they show a lot of resilience that most other companies do not have in the electronics sector.

You get a forward dividend yield of 5.59%. The real kicker is that the payout ratio is less than 37%. Management has been increasing the dividend at over 10% annually on average over the past 5 months. The business itself doesn’t need to grow at a flashy pace before Wall Street starts paying more due to how much income it can churn out.

HPQ trades at less than 7 times forward earnings.

The post 3 Dividend Stocks With High Yields and a Triple-Digit Upside Potential appeared first on 24/7 Wall St..

Live Updates

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and HP didn't make the cut. Grab the names FREE today.

Final Reaction

Aug 27, 2025 at 4:35 PM EDT

Not a blowout, but a credible stabilization quarter that supports HP’s pivot toward AI PCs and strengthens investor confidence into FY26.

HP is showing it can weather tariff shocks and ride the AI PC cycle to steady growth and FCF generation.

• Bullish: AI PCs delivering ASP uplift, Q4 EPS outlook raised, cash flow execution.
• Bearish: Printing remains a structural drag, margins still compressed vs. last year.
• Neutral: EPS flat YoY on a non-GAAP basis; growth modest relative to broader tech peers.

 

What Changed This Quarter

Aug 27, 2025 at 4:32 PM EDT

• PC strength returned: Fifth straight quarter of revenue growth, driven by AI PC mix and Win11 refresh.

• Tariff headwinds easing: Supply chain shifts nearly complete; CFO sees full mitigation by Q4.

• Printing still lagging: Supplies and hardware units remain in decline, partially offset by high margins.

• Cash flow improved: FCF rose double digits, giving HP flexibility to fund buybacks and dividends.

Key Operating Highlights

Aug 27, 2025 at 4:29 PM EDT

KPI	Q3 FY25	YoY	Note
Personal Systems Revenue	$9.9B	+6%	Consumer +8%, Commercial +5%
Printing Revenue	$4.0B	–4%	Supplies –4%, Commercial –3%
PS Units	+5%	Up	AI PCs ~25% of mix
Printing Margin	17.3%	Flat	High end of target range
Free Cash Flow	$1.5B	+13%	Strong working capital execution

Guidance Update

Aug 27, 2025 at 4:25 PM EDT

Stock now up 2.88% after-hours.

Metric	Guidance	Consensus	Change
Q4 FY25 GAAP EPS	$0.75–$0.85	$0.77	Raised range
Q4 FY25 Non-GAAP EPS	$0.87–$0.97	$0.88	Raised
FY25 Free Cash Flow	$2.6B–$3.0B	~$2.7B est.	Raised

More on the top line numbers

Aug 27, 2025 at 4:19 PM EDT

Metric	Reported	Consensus	Beat/Miss
Revenue	$13.9B (+3% YoY)	$13.71B	Beat
EPS (Non-GAAP)	$0.75 (–11% YoY)	$0.75	Inline
EPS (GAAP)	$0.80 (+23% YoY)	$0.70 est.	Beat
Free Cash Flow	$1.5B (+13% YoY)	N/A	—

A solid top-line beat and strong cash generation outweighed soft EPS optics. With AI PCs now ~25% of mix and tariff mitigation progressing, the +4.8% move reflects relief that HP is regaining stability after several difficult quarters.

Management Commentary

Aug 27, 2025 at 4:19 PM EDT

CEO Enrique Lores: “In Q3 we delivered a fifth consecutive quarter of revenue growth, driven by strength in Personal Systems and strong momentum in our key growth areas.”

CFO Karen Parkhill: “We remain confident in the strength of the PC market opportunity, and expect continued momentum from Windows 11 refresh and AI PC adoption.”

Management framed the quarter as proof of execution discipline — AI PC adoption is now fueling ASP uplift, while tariff-related costs are being successfully offset ahead of Q4.

HP Numbers Are In, Stock up 4.7%

Aug 27, 2025 at 4:15 PM EDT

Revenue was $13.90 billion, above the $13.71 billion consensus estimate. EPS was $0.75, in line with the $0.75 consensus estimate.

HP Inc. reported a 3.1% increase in revenue year-over-year, driven by growth in Personal Systems and key growth areas. The company achieved a GAAP diluted EPS of $0.80, up from $0.65 in the prior-year period. Free cash flow was $1.5 billion, and the company returned $0.4 billion to shareholders through dividends and share repurchases.

HP remains optimistic about the PC market, expecting continued momentum from Windows 11 refresh and AI PC adoption. The company anticipates GAAP EPS for Q4 2025 to be between $0.75 and $0.85, and non-GAAP EPS to range from $0.87 to $0.97.

EPS	0.75 Beat	Est. EPS	0.75
Revenue	$13.90B Beat	Est. Revenue	$13.71B

How HP Stock Performed After Recent Earnings

Aug 27, 2025 at 3:00 PM EDT

Quarter	EPS Surprise	1-Day Move	7-Day Move	14-Day Move
Q2 2025	–11.3%	–8.26%	–7.40%	–8.81%
Q1 2025	0.0%	–6.82%	–9.50%	–12.46%
Q4 2024	0.0%	–11.36%	–7.40%	–11.83%
Q3 2024	–3.9%	+2.00%	–1.67%	–0.12%

HP Inc. (NYSE: HPQ) eports fiscal Q3 2025 earnings after the close. The PC and printer maker has been caught in the crosscurrents of AI PC demand tailwinds and tariff-driven cost headwinds. In Q2, HP delivered revenue of $13.22 billion (+3% YoY) but EPS of just $0.71, missing estimates by 11% due to tariffs. With shares down sharply after recent earnings calls, investors will be watching closely to see if cost mitigations and the AI PC cycle can turn the tide.

What to Expect When HP Reports Tonight

Wall Street consensus for fiscal Q3 2025:

• Revenue: $13.71 billion
• EPS (Normalized): $0.75
  
  
• FY 2025 Revenue: $54.73 billion
• FY 2025 EPS: $3.12
  
  
• FY 2026 Revenue: $55.54 billion
• FY 2026 EPS: $3.37

That implies +1.4% YoY sales growth this quarter, but EPS falling nearly –10% YoY. 

Key Areas to Watch

1. Tariff Mitigation & Supply Chain Shift- HP accelerated moving nearly all North America product manufacturing outside of China by June 2025. CEO Enrique Lores said cost impacts will be fully mitigated by Q4.

2. AI PCs as Growth Engine- AI PCs now ~25% of HP’s PC mix, expected to hit 50% within three years. Management emphasized ASP uplift of 10–20% and strong ISV support.

3. Future Ready Cost Program- Targeting $2B in gross annual savings by FY2025 through supply chain redesign, automation, and IT simplification. CFO Parkhill said Q3/Q4 margins should benefit as these savings ramp.

4. Commercial PC & Windows 11 Refresh- Commercial unit growth +11% in Q2; Win11 and AI refresh cycles remain key to H2 demand, despite management moderating PC growth expectations to low single digits.

5. Print Margins & Industrial Growth- Print revenue down –3% YoY, but margins at the high end of 16–19% range. New industrial graphics portfolio launched at drupa has seen strong adoption.

The post Live: HP Inc. (HPQ) Reports Earnings Today – Will Shares Decline? appeared first on 24/7 Wall St..

The Federal Reserve’s Chair Jerome Powell is under immense pressure from the Trump administration to loosen the monetary policy. The futures market has priced in two rate cuts this year, and these cuts will lead to Treasury bills yielding less. In turn, every income-starved fund, retiree, and retail investor will scramble for yield.

Dividend stocks that have regularly increased their payouts through the pandemic, through supply-chain chaos, and through last year’s banking mini-crisis will be among the biggest winners.

Those in the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) are worth paying more attention to. This is an ETF that tracks the performance of the S&P U.S. Dividend Growers Index. It also excludes some dividend stocks that may be yield traps.

The following five are some of the highest-yielding dividend stocks in the VIG ETF. They comfortably pay more than the long-term Fed inflation target and have increased their dividend payouts regularly.

Eastman Chemical Co (EMN)

Eastman Chemical Co (NYSE:EMN) makes chemicals, fibers, and plastics. The stock has been more or less flat over the past five years, though there have been some ups and downs from $70 to $110 in between. The current price is near the lower end of that range.

It is a slow-growing company, but one that has great cash flow and good long-term upside. Analysts see an EPS decline of 7.22% this year, though EPS is expected to recover by 11.41% the year after and grow by around 10% annually thereafter.

Lower interest rates will also help mitigate the net interest loss of $200 million that it reported last year.

EMN stock could cross $100 or more in the next 24 months as earnings improve and interest rates decline. In the meantime, you can collect its 4.38% dividend yield. Dividends have been increased for 15 consecutive years.

HP Inc (HPQ)

HP Inc (NYSE:HPQ) makes computers and printing machines. The segment responsible for computers constituted 67.6% of its operating revenue in FY 2024, with the Printing segment constituting 32.4%.

Again, this is not a red-hot growth company, but the cash flow is solid. AI trends could also nudge growth above expectations in the coming years. The price is quite cheap, as you’re paying less than 13 times free cash flow if you value it based on enterprise value. If you value it on trailing earnings, you’re paying less than 10 times.

HPQ comes with a 4.51% dividend yield and a dividend payout ratio of just 35%, so there’s significant room for more dividend hikes. Dividends have already been increased for 15 consecutive years. Alongside those dividends, you get a very aggressive track record of buybacks. The 3-year average share buyback ratio is 4.9%, better than 98.68% of HP Inc.’s sector peers.

Target (TGT)

Target (NYSE:TGT) is down 60% from its peak in 2021 as the post-COVID growth wave passes. The valuation now is much more attractive, and TGT stock could be bottoming out after bouncing off $100 several times.

Analysts see one more year of negative earnings growth in the fiscal year ending in January 2026, after which ~7-10% annual EPS growth is expected through 2030. Revenue is also expected to decline 1.83% in FY 2026 before growing 2-3% annually. This is in line with most other retail companies and should help TGT stock get back on track.

TGT stock comes with a 4.38% dividend yield. It is also a Dividend King with 56 consecutive years of dividend payments.

Comcast (CMCSA)

Comcast (NASDAQ:CMCSA) is a telecom and media giant. The company has been getting increasingly shareholder-friendly over the past few years, despite interest rate hikes increasing the debt servicing burden. The company posted $4.1 billion in net interest losses in FY 2024. However, it still managed to report $16.2 billion in net income, maintaining both dividends and buybacks.

Comcast has grown its top line and bottom line consistently over the long run. The growth has slowed in recent years, but analysts don’t expect a decline anytime soon.

CMCSA stock has a dividend yield of 4.02%, with 18 consecutive years of dividend hikes.

Merck & Co (MRK)

Merck & Co (NYSE:MRK) is a healthcare company with a diversified portfolio of medical products. MRK stock has been one of the most consistent names in the 2010s, and things were equally smooth-sailing in the 2020s until it started declining in 2024. MRK stock is down over 37% from its March 2024 peak. This is mostly due to Keytruda (responsible for around half of Merck’s revenue) patents expiring starting in 2028. The company has also faced competition from other companies in diabetes treatment and lower demand from China.

However, management can mitigate this due to its massive pipeline of drugs and combination regimens that can extend Keytruda’s label well beyond 2028.

Merck also derives only 8.6% of its revenue from China, and a majority of that revenue is not at risk.

The company has solid cash flows and is expected to grow sales 4-5% annually in the coming years, with 12% annual EPS growth. The current discounted price takes most of the risks into account, and MRK stock has likely bottomed out.

It comes with a 3.92% dividend yield, increased for 14 consecutive years.

The post 5 Regular Payout High-Yield VIG Dividends to Outpace the Fed appeared first on 24/7 Wall St..

Almost all software companies categorize themselves as part of the artificial intelligence sector. High valuations are synonymous with that category, so prices have surged across the board. The Nasdaq 100’s price-earnings ratio today is at 40.7 times, comparable to the 2021 bubble. Historically, the median value has been at 20.7 times.

Obviously, there’s plenty of growth and a life-changing technology behind that. But the price tags on many tech stocks will make anyone balk. AI stocks also rarely pay a dividend as they are investing as much cash as possible into their businesses to go all-in on growth. Those that do pay dividends usually yield ~1-2%.

Can you still find good dividend-paying AI stocks in this environment without nosebleed valuations? It’s still possible. Below are three stocks with plenty of AI exposure and solid dividend yields.

HP Inc (HPQ)

Printers and cheap laptops are probably the first things that spring to mind when you think of HP Inc (NYSE:HPQ). However, the business can get much hotter as HP is focusing more on growth inchmeal. This is a mature business that generates significant cash flow, but the lack of growth is why it hasn’t delivered much upside in the past few years.

In fact, HPQ stock is down 25% year-to-date due to tariff-related concerns.

A sharp recovery is likely. HP is releasing new AI-infused products, like the New EliteBook Ultra, OmniBook X, and Z workstations ship with on-chip NPUs (up to 50 TOPS) to run local large-language-model and vision workloads without the cloud. After DeepSeek R1’s release, these local models are gaining popularity.

HP also has Cloud service and on-prem workstation bundles for building, tuning, and deploying generative-AI models for data science teams.

The company has very strong cash flow and has reduced its outstanding shares from 1.712 billion in FY 2016 to 938.989 million in FY 2024. This is mainly through aggressive dividends and buybacks.

You’re only paying a bit over 13 times enterprise value for HPQ stock. In return, you get some of the strongest cash flow and plenty of AI exposure. I see 60%-plus upside potential over the next 24 months.

The dividend yield of 4.72% is better than 83.2% of peer companies, and the 3-year average share buyback ratio of 4.9%  is better than 98.63% of peer companies.

Verizon (VZ)

Verizon (NYSE:VZ) has been overlooked for too long as a stale, debt-ridden telecom company, but the underlying business seems poised to make a full recovery like AT&T (NYSE:T) has done.

Wall Street will get increasingly bullish on telecom companies as it becomes apparent that companies in the networking space will be key beneficiaries of the data center/cloud computing boom. Verizon has a huge 5G network, metro fiber, and its own data centers that hyperscalers can use to minimize latency significantly.

AI-powered personalized wireless plans are used by nearly half of Verizon’s consumer base. The company has partnerships with Nvidia (NASDAQ:NVDA), Vultr, Meta Platforms (NASDAQ:META), and Google Cloud.

$167.7 billion in debt is mainly to blame for Verizon being a laggard in recent years. The company posted $6.3 billion in FY 2024 net interest losses. This is a record number, but interest rate cuts will eventually ease this burden.

Regardless, Verizon still posted $17.5 billion in net income that fiscal year, covering its dividend payments of $11.249 billion. VZ stock now yields 6.55%.

OpenText (OTEX)

OpenText (NASDAQ:OTEX) is a software company that manages content and unstructured data for companies. That’s where AI specializes, and OpenText is going all-in by pursuing an “AI-first” strategy.

It has an AI product called OpenText Aviator, integrated with OpenText’s Business Cloud. Clients can use generative AI and large language models to search and easily manage data. OpenText claims it can free up to 70% of a team’s time through features like conversational search and summarization.

OTEX stock is down 48% from its 2021 peak but could bottom out soon as financials stabilize. Analysts expect EPS to decline by 11.8% this fiscal year (ends in June 2025) before recovering by 10.5% and growing from there. The 11% decrease in revenue this fiscal year is mainly due to the divestiture of its AMC business.

You can sit on its 3.75% dividend yield as you wait for the business to make an AI-driven turnaround. Growth is low, but management is moving in the right direction by cost-cutting and integrating AI.

The post 3 AI Dividend Stocks With Healthy Yields appeared first on 24/7 Wall St..

Reaching retirement age can be both a blessing and a curse, but relying solely on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. The ideal plan for retirees and those nearing retirement is to establish a passive income stream. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

With the youngest Baby Boomers (Americans born between 1946 and 1964) approaching retirement age, it is becoming increasingly important to focus on magnificent dividend stocks that will provide significant passive income, either in or out of designated retirement accounts, such as IRAs. However, the youngest Baby Boomers are still looking for stocks that not only pay dependable dividends but also offer growth potential. For context, the youngest Boomers are now 61, while the oldest are nearing 80. Younger Boomers tend to be tech-savvy and are willing to take on a bit more risk for solid growth potential.

We screened our 24/7 Wall St. dividend tech stock universe to identify companies with the highest dividends that also offer sizable growth potential, as well as some exposure to the parabolic growth of cloud computing and artificial intelligence. Four old-school OG giants hit our screens. All are sensible choices for younger Boomers seeking technology exposure and dependable quarterly dividends. Each is rated Buy by some of the top Wall Street firms we cover.

Why do we cover technology dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Cisco

Cisco Systems Inc. (NASDAQ: CSCO) develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. This legacy technology giant is close to reaching a 52-week high and offers a solid dividend Cisco designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry, seeking center switching:

• Enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure and reliable connectivity to campus, data center, and branch networks
• Wireless products include wireless access points and controllers
• Compute portfolio, including the Cisco Unified Computing System, HyperFlex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization

In addition, it provides Internet for future products consisting of:

• Routed optical networking
• 5G
• Silicon and optics solutions
• Collaboration products, such as meetings, collaboration devices, calling, contact centers, and communication platforms as a service
• End-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust
• Optimized application experience products, including full-stack observability and network assurance

Further, the company offers a range of service and support options for its customers, including technical support, advanced services, and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers.

Evercore ISI has an Outperform rating for the stock with a $72 target price.

Corning

This company is a giant in the fiber optic industry and is a solid investment option for those seeking consistent growth and upside potential. Corning Inc. (NYSE: GLW) operates as an innovator in the field of materials science.

Its segments include:

• Optical Communications
• Display Technologies
• Specialty Materials
• Environmental Technologies, and Life Sciences

Corning’s Optical Communications segment manufactures components for carrier and enterprise networks in the telecommunications industry.

The Display Technologies segment manufactures glass substrates for flat-panel displays, including liquid crystal displays and organic light-emitting diodes.

Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics and fluoride crystals for customer needs.

The Environmental Technologies segment manufactures ceramic substrates and filters for emission control systems in mobile applications.

The Life Sciences segment develops, manufactures, and supplies laboratory products, including labware, equipment, media, serum, and reagents, enabling workflow solutions for drug discovery and bioproduction.

Oppenheimer has an Outperform rating with a $55 target price.

IBM

International Business Machines Corp. (NYSE: IBM), nicknamed Big Blue, is an American multinational technology company. The legacy blue-chip tech giant offers conservative investors a safer way to play the sector and is up 7.1% in 2025. IBM and its subsidiaries provide integrated solutions and services worldwide.

The company operates through four segments:

• Software
• Consulting
• Infrastructure
• Financing

The Software segment offers a hybrid cloud and AI platform that enables clients to realize their digital and AI transformations across their applications, data, and environments. IBM has partnered with Amazon Web Services (AWS) to allow users to access Watson X AI features and its data platform. IBM also partnered with Palo Alto Networks, allowing the cybersecurity company to acquire IBM’s QRadar Software as a Service (SaaS) assets.

The Consulting segment focuses on integrating skills across strategy, experience, technology, and operations by domain and industry.

The Infrastructure segment provides on-premises and cloud-based server and storage solutions and life-cycle services for hybrid cloud infrastructure deployment.

The Financing segment offers client and commercial financing that facilitates IBM clients’ acquisition of hardware, software, and services.

The company has a strategic partnership with various companies, including:

• Hyperscalers
• Service providers
• Global system integrators
• Software and hardware vendors, including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics SAP, and others

Bank of America has a Buy rating with a recently raised $290 target price.

HP 

This legendary Silicon Valley giant has very promising growth prospects. HP Inc. (NYSE: HPQ) is a global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services.

The company delivers a range of devices, services, printing, and subscriptions for:

• Personal computing
• Printing
• Three-dimensional (3D) printing
• Hybrid work
• Gaming

It operates through three segments:

• Personal Systems
• Printing
• Corporate Investments

The Personal Systems segment offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions, and services.

The printing, segment offers consumer and commercial printer hardware, supplies, services, and solutions. The printing segment is also focused on graphics and personalization in the commercial and industrial markets. Corporate Investments include certain business incubation and investment projects.

JPMorgan has an Overweight rating on the shares with a $27 target price.

Baby Boomers Are Using Six Incredible ETFs to Generate Huge Passive Income

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