2021 has been an ugly year for many tech stocks, especially high-growth names that benefited from stay-at-home trends during the pandemic. Rising bond yields are sparking a rotation from growth to value stocks, and investors are also pivoting toward companies that will recover as vaccination rates rise.
Faced with these challenges, it might be tempting to sell your tech stocks. However, defensive companies in the sector that generate slower growth but trade at lower valuations should still hold up well during this rotation.
Oracle (NYSE: ORCL), Accenture (NYSE: ACN), and Skyworks Solutions (NASDAQ: SWKS) fit that description — and will pay consistent dividends to investors as they ride out the industry’s near-term volatility.