The Nasdaq has been absolutely obliterated this year, down a stunning 27%, which puts the tech-heavy index firmly in bear market territory. One of the biggest reasons for this is the large tech influence of the index, but another is that many stocks were horribly overbought and have been pushed to absurd levels by the FOMO, or “fear of missing out,” group.
There has been a glimmer of hope on the horizon for stock investors recently. While the all-clear rally flag is not being waved, it does appear that some of the worst is behind us. The consumer and producer price index numbers for October seem to indicate that we may have hit peak inflation and it is starting to come down. If that is indeed the case, brighter days may be ahead.
While many feel that the recent rally is of the bear market variety, the potential for the Santa Claus rally, which tends to be the ultimate seasonality play, means investors might be able to make some hay while the sun shines for the balance of 2022.
Given the Nasdaq’s awful year we decided to screen the index looking for the highest-yielding stocks and found that they all have some solid defensive qualities and are offering among the best entry points in some time.
Stocks are listed in order of the highest yield.
Intel
This legacy leader in semiconductors has been hammered, and while some feel it is a value trap, it is hard to count out the company that defined the semiconductor revolution. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide.
The platforms are used in various computing applications, comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.
Intel announced last January it would invest significantly to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to automobiles. Intel says the 1,000-acre “mega-site” northeast of Columbus has room for as many as eight plants, known as “fabs.” The company estimates it would require a $100-billion investment to fully build and equip those plants.
Shareholders receive a 4.92% dividend. Needham has a $32 price target on Intel stock. The consensus target is $31.58, and Friday’s closing share price was $27.89.
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