7 Stocks That Can Withstand a Taper Tantrum - 1 of 7

#1 - KLA Corporation (NASDAQ:KLAC)

The first stock on our list is KLA Corporation (NASDAQ: KLAC). This is a stock that certainly checks the box on Return on Equity. In its last quarter, KLA recorded an ROE of 68.1%. The company manufactures and services the equipment that makes microchip wafers. That means the company is going to be essential to resolving the global chip shortage which is affecting many sectors in the short term.

KLA Corporation delivered a strong earnings report in July. In addition to beating on the top and bottom lines, KLA announced a 16% increase in its dividend. That makes it 11 years of consecutive dividend growth and a three-year dividend payout ratio of 54.87%. Some may turn up their nose at the company’s dividend yield that is only 1.28% as of this writing. However, KLA announced a $2 billion share buyback program.

Analysts love KLAC stock. Since the company delivered its earnings report the stock has received one upgrade and six increases in its price target.

About KLA

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB, Display and Component Inspection. Read More 

Current Price

$644.22

Consensus Rating

Moderate Buy

Ratings Breakdown

11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$688.42 (6.9% Upside)