Why Old-School Mega-Cap Tech Stocks May Be the Best Summer Buys

Despite incredible economic numbers and the potential for second-quarter gross domestic product to be the highest in years, the sword of Damocles continues to hang over the stock market. The growl of the bears are getting louder, and in some cases, with good reason. Many stocks are very pricey and, on a historical basis, the indexes are pushing forward price-to-earnings multiples uncomfortably high.

So what should growth investors do? One good idea is to stick with technology, which as a sector continues to have solid forward growth potential, and then look for mega-cap leaders with lower price to earnings multiples.

We screened the Merrill Lynch technology research coverage universe and found four companies that pay dividends, have stocks rated Buy and offer investors a fighting chance in an expensive investing world.

Apple

This technology giant has been hit on concerns that the iPhone X is not the huge home run that was expected. Apple Inc. (NASDAQ: AAPL) designs, manufactures and markets consumer electronics and computers, and it has developed its own proprietary iOS and Mac OS X operating systems and related software platform/ecosystem.

Revenues are principally derived from the iPhone line of smartphones, hardware sales of the Macintosh family of notebook and desktop computers, iPad tablets and iPod portable digital music players. The company also realizes revenue from software, peripherals, digital media and services.

One of the most famous portfolio managers who is bullish on the company is the legendary Warren Buffett, who owns a reported and stunning 240 million shares, 75 million of which he bought in the first quarter of 2018. With shares trading at a low 14.33 times estimated 2019 earnings, it’s easy to see why the Oracle of Omaha has a massive position.

Apple shareholders receive a 1.53% dividend. The Merrill Lynch price target for the

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