When markets get turbulent, investors often shift their focus toward dividend-yielding stocks. The appeal is straightforward: these companies typically generate strong free cash flows and reward shareholders with consistent dividend payouts, providing income even when stock prices aren't cooperating.
In the technology sector, high dividend yields aren't always the norm, but when you find them paired with solid fundamentals, they're worth a closer look. Here's what some of Wall Street's most accurate analysts are saying about three tech stocks currently offering yields above 3%.
Microchip Technology Inc
Dividend Yield: 3.21%
Microchip Technology Inc. (MCHP) has caught the attention of top-tier analysts with mixed signals. Christopher Danely from Citigroup maintained a Buy rating on November 7, 2025, though he trimmed his price target from $90 to $80. Danely brings an 80% accuracy rate to his calls, so his continued bullishness carries weight.
Meanwhile, William Stein at Truist Securities took a more cautious stance, maintaining a Hold rating while slashing his price target from $64 to $60 on the same day. Stein's track record is even more impressive at 86% accuracy, suggesting investors should pay attention to his measured approach.
The most recent corporate news offers a brighter picture: on December 2, Microchip Technology raised its FY26 guidance, signaling management's confidence in the company's trajectory despite the mixed analyst sentiment.
Texas Instruments Inc
Dividend Yield: 3.24%
Texas Instruments Inc. (TXN) offers a slightly higher yield than Microchip, but recent analyst moves suggest some caution is warranted. Harlan Sur from JP Morgan maintained an Overweight rating on October 22, 2025, but reduced his price target from $225 to $210. Sur's 80% accuracy rate makes his continued optimism noteworthy, even with the lowered expectations.
Matthew Prisco at Cantor Fitzgerald stayed on the sidelines with a Neutral rating while cutting his price target more aggressively from $200 to $170 on the same date. With an 85% accuracy rate, Prisco's hesitation is worth considering.
The context matters here: on October 21, Texas Instruments issued fourth-quarter EPS and sales guidance that fell below analyst estimates, likely triggering the subsequent price target reductions. When a company misses expectations, even solid dividend yields can't always offset investor concerns about growth prospects.
Xerox Holdings Corp
Dividend Yield: 3.73%
Xerox Holdings Corp. (XRX) offers the highest yield of the three at 3.73%, but analyst sentiment remains decidedly lukewarm. Asiya Merchant from Citigroup maintained a Neutral rating on November 10, 2025, while slashing the price target from $4.50 to $3.50. Merchant boasts an impressive 88% accuracy rate, the highest among all analysts mentioned here, making this downward revision particularly significant.
Erik Woodring at Morgan Stanley was even more bearish, maintaining an Underweight rating and cutting his price target from $10 to $8 on October 30, 2025. While Woodring's 77% accuracy rate is the lowest in this group, his negative stance aligns with Merchant's cautious outlook.
On the corporate front, Xerox named Chuck Butler as Chief Financial Officer on November 19, a leadership change that could signal a fresh strategic direction for the company as it navigates its challenges.
The Bottom Line on Dividend Tech Stocks
Dividend yields above 3% in the technology sector are relatively uncommon, making these three stocks interesting options for income-focused investors. However, yields alone don't tell the whole story. The analyst ratings reveal a mixed bag: Microchip Technology recently raised guidance and maintains some bullish support, Texas Instruments is dealing with near-term growth concerns, and Xerox faces more fundamental questions despite its attractive yield.
When evaluating dividend stocks, it's crucial to consider not just the yield percentage but also the sustainability of those payments and the company's overall financial health. High-accuracy analysts provide valuable perspective, but their differing views on these stocks underscore the importance of doing your own homework before committing capital.