3 Safe Dividend-Paying Tech Stocks to Buy for Coronavirus Volatility

U.S. stocks fell Wednesday as Wall Street reacts to rough earnings results from Bank of America BAC, JP Morgan JPM, and other banking giants. Plus, U.S. retail sales fell 8.7% in March as the coronavirus social distancing efforts brought a halt to large swaths of the economy.

Wednesday’s decline came as some investors likely start to take a step back and examine the broader economic picture, after a rapid three-week run saw the S&P 500 jump over 25% from its March 23 lows.

Nearly 17 million people in the U.S. have already applied for unemployment benefits since the coronavirus pandemic began to shut down large chunks of the U.S. economy, practically overnight. And this number is set to climb when this week’s figures come out.

Meanwhile, corporate earnings are projected to plummet nearly 14% in the Q1 and over 24% in the second quarter, based on our most recent Zacks data—with the outlook rapidly deteriorating in recent weeks (also read: Shaky Start to Q1 Earnings Season).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Clearly, there signs of hope on the coronavirus front and that social distancing measures are working to flatten the curve. There are now calls to start to reopen some parts of the U.S. and European economies in an effort to slowly return to normal.” data-reactid=”23″>Clearly, there signs of hope on the coronavirus front and that social distancing measures are working to flatten the curve. There are now calls to start to reopen some parts of the U.S. and European economies in an effort to slowly return to normal.

That said, market volatility is likely to remain amid the uncertainty, even though the Fed and the U.S. government are providing support. Stocks could fall again and perhaps even test their March 23 lows. But that doesn’t mean that most investors will want to stay completely on the sidelines because no one knows the future—just think if you pulled out entirely right before the recent market bottom.

With this in mind, let’s take a look at three safe-haven, dividend-paying tech stocks that should help investors weather the current coronavirus storm. They might also prove to be steals at their current prices six months or a year from now, even if the market slips again…

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Verizon VZ ” data-reactid=”26″>Verizon VZ

Verizon is the largest U.S. wireless carrier by subscribers. The telecom powerhouse operates within a recession-resilient industry because people are less likely to cut wireless and broadband services during downturns, especially when they are stuck inside. Verizon has also not taken on a ton of debt to fuel expansion into new industries like rival AT&T T. Even before the coronavirus outbreak, VZ was focused on various cost-cutting measures as it ramps up its 5G push, which requires a large amount of capital spending.

VZ closed 2019 on a high note, after it recorded its most Q4 wireless adds in six years. Our current Zacks estimates call for its fiscal 2020 and 2021 earnings and revenue to climb despite the economic downturn. VZ shares have outpaced their industry and AT&T in 2020, and are down just 3% in the last 12 months, which roughly matches the S&P 500 and crushes its industry’s 12% average decline—VZ is up 18% over a two-year stretch vs. AT&T’s 16% decline.

Verizon is currently a Zacks Rank #3 (Hold) that sports an overall “B” VGM score and its Wireless National industry rests in the top 11% of our more than 250 Zacks industries. On top of that, VZ’s dividend yield comes in at an impressive 4.32%. This crushes the S&P 500’s 2.08% average and its payout ratio rests at a solid and sustainable 51%. Investors should note that VZ is set to release its Q1 FY20 earnings results on Friday, April 24.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft MSFT” data-reactid=”30″>Microsoft MSFT

Microsoft is about as safe as they come at the moment, thanks in large part to its expansion into cloud computing. Today, Microsoft is an enterprise cloud leader alongside Amazon AMZN. MSFT did warn Wall Street back in late February that it was likely to miss its quarterly sales guidance for its More Personal Computing segment. Yet, investors should be happy to note that at the time its Q3 guidance “remain unchanged” for its other units. This includes its key Intelligent Cloud unit that saw its sales surge 27% last quarter.

MSFT’s other segments have continued to evolve and expand as well. The company also owns LinkedIn, which saw its revenue jump 24% last quarter. Plus, its Teams business is tailor-made for the current stay-at-home environment and it’s ready to take on business and video communication firms such as Slack WORK and Zoom ZM.

Peeking ahead, Microsoft’s adjusted earnings are projected to surge over 17% and 11.5%, respectively in fiscal 2020 and 2021, with revenue set to jump 11.6% and 11%. These estimates mark the continuation of strong growth in recent years and show how resilient MSFT is to the current economic downturn—Microsoft is set to report on April 29.