Technology stocks have a tendency to be associated with
growth stocks. High-flying tech stocks like Amazon (AMZN) or Netflix (NFLX) typically
have lofty valuations, inconsistent profitability, and rarely pay dividends. As
a result, the high-growth tech industry usually has little to offer value and
dividend investors.
But investors looking for reasonable valuations and dividend
income do not have to avoid the tech industry altogether. There are a few
high-quality tech stocks that have strong profits, modest valuations, and pay
dividends to shareholders.
For example, Intel Corporation (INTC) is a classic value and
income stock. It has a cheap valuation and a solid dividend yield of 2.4%. And,
like many of its tech peers, the company has a long runway of growth ahead.
Business Overview
Intel is the world’s largest semiconductor company. It has a
market capitalization of $240 billion. It is a chip manufacturer, with a heavy
presence in personal computers. This has held Intel down in recent years, as
the PC industry has stagnated as consumers shift toward mobile devices like
smartphones and tablets. Intel’s PC segment still represents nearly half of its
total revenue, which has kept Intel from generating growth.
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