Tech Stocks with High Dividend Yields
When markets swing, many investors reach for dependable income. Dividend payers can help smooth the ride, and in tech—where growth stories often dominate—several established names also return cash to shareholders. Below, we look at three tech companies that currently offer notable dividend yields and summarize what recent analyst calls and company updates might mean for you.
On the list: Xerox Holdings Corporation (NASDAQ: XRX), International Business Machines Corporation (NYSE: IBM), and Hewlett Packard Enterprise Company (NYSE: HPE). Their recent yields, respectively 9.77%, 3.28%, and 2.95%, set the stage. The details matter, so let’s take them one by one.
Xerox Holdings Corporation: Yield First, Then the Caveats
Xerox Holdings Corporation (NASDAQ: XRX) stands out with a dividend yield of 9.77%. That’s eye-catching. It also invites a closer look at expectations. Analyst Ananda Baruah at Loop Capital recently reiterated a Hold rating and took the price target down from $14 to $11, with an accuracy rate noted at 76%.
What Analysts Are Saying
Citigroup’s Asiya Merchant initiated coverage with a Sell rating and a price target of $11. Merchant’s tracked accuracy is 66%. Read together, those views argue for caution around the stock even as the income line offers appeal.
What’s New at the Company
On September 5, Xerox announced a strategic partnership with Taktiful Software Solutions. Partnerships like this can broaden service capabilities and help sharpen the company’s positioning with clients. The headline: progress, but measured against conservative analyst stances.
International Business Machines Corporation: A Dividend with Discipline
International Business Machines Corporation (NYSE: IBM) offers a dividend yield of 3.28%. UBS analyst David Vogt maintains a Sell rating, even as he lifted the price target from $130 to $145, with an accuracy rate of 72% cited for his calls. It’s a nuanced signal: skepticism on the shares, but with a higher bar for where they could trade.
Recent Analyst Moves
Jefferies’ Brent Thill kept a Hold rating and raised the price target from $190 to $200 as of July 25. Thill’s accuracy rate stands at 78%. That combination—one Sell with a higher target, one Hold with an even higher target—suggests a mixed but not negative stance across the analyst set referenced here.
Strategy in Motion
IBM also announced its intent to acquire Accelalpha, a global Oracle services provider. For IBM, which has emphasized hybrid cloud and services, this points to an ongoing effort to deepen capabilities that support enterprise clients across complex environments. The dividend provides steady income; the deal signals continued repositioning.
Hewlett Packard Enterprise Company: Income with an Eye on Funding
Hewlett Packard Enterprise Company (NYSE: HPE) currently shows a dividend yield of 2.95%. Analyst Ananda Baruah has reiterated a Hold rating and bumped the price target from $16 to $18, with a 74% accuracy rate reported. The message: incremental confidence, not a full-throated endorsement.
Sentiment to Watch
Wamsi Mohan at B of A Securities remains Neutral and lowered the price target from $24 to $21 on September 5. That move fits the more careful tone around several tech infrastructure names—constructive on fundamentals in parts, yet restrained on valuation or near-term growth.
Financing Update
Hewlett Packard Enterprise announced a public offering of $1.35 billion in Series C mandatory convertible preferred stock. The intent is straightforward: fund growth initiatives and fine-tune the capital structure. For dividend-focused investors, it’s useful context on how HPE balances returns to shareholders with investments in the business.
Bottom Line
Dividends can anchor a portfolio, but the story behind the yield matters. Xerox offers the highest income of the three, alongside cautious analyst views and a new partnership announced on September 5. IBM’s yield sits in the middle, backed by disciplined capital returns and a planned Accelalpha acquisition that supports its services strategy. HPE’s yield is lower but paired with active capital moves and balanced analyst commentary. If you’re seeking income from tech, these names provide a starting point—each with its own trade-offs between payout, outlook, and pace of change.
Frequently Asked Questions
What are the current dividend yields for these three tech stocks?
Xerox’s dividend yield is 9.77%, IBM’s is 3.28%, and HPE’s is 2.95%. Those figures frame the income profile for each company.
How are analysts rating Xerox right now?
Loop Capital’s Ananda Baruah kept a Hold rating and cut the price target from $14 to $11 (76% accuracy), while Citigroup’s Asiya Merchant started coverage with a Sell rating and an $11 target (66% accuracy).
What recent developments could influence IBM’s outlook?
IBM announced its intent to acquire Accelalpha, a global Oracle services provider. Analysts referenced here are mixed: UBS’s David Vogt is at Sell with a higher target of $145, and Jefferies’ Brent Thill is at Hold with a $200 target as of July 25.
What’s the latest analyst sentiment on HPE?
Ananda Baruah maintained a Hold rating and raised the target from $16 to $18 (74% accuracy). B of A’s Wamsi Mohan stayed Neutral and lowered the target from $24 to $21 on September 5.
Did HPE make any recent financing moves?
Yes. HPE announced a public offering of $1.35 billion in Series C mandatory convertible preferred stock, aiming to support growth investments while managing its capital structure.
