In a world where tech stocks often fail to offer both dividend yield and growth, here's a company that delivers that elusive combination.
When we think dividend tech stocks, we often think of
popular companies such as Apple (AAPL), Microsoft (MSFT) or Nvidia (NVDA).
Those companies have two things in common: They offer great growth potential,
but also pay a ridiculously small yield.
Is it possible to find a tech stock that would give us both?
A company like IBM (IBM) could come into mind as it offers a very generous
yield in this sector (around 4.5%). The problem is that IBM’s core business is
still slowing down. The shift towards the cloud business seems quite difficult
and other players are just doing it better. IBM hopes its shipping blockchain
based solutions will provide additional growth as it is hard to replicate. Your
dividend is safe and will continue to increase, but do not expect much besides
that from your investment in this aging monolith. I have a better pick for you.
Introducing Broadcom (AVGO)
Broadcom--the combined entity of Broadcom and Avago--boasts
a highly diverse product portfolio across an array of end markets. Avago
focused primarily on radio frequency filters and amplifiers used in high-end
smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition
to an assortment of solutions for wired infrastructure, enterprise storage, and
industrial end markets. Legacy Broadcom targeted networking semiconductors,
such as switch and physical layer chips, broadband products (such as television
set-top box processors), and connectivity chips that handle standards such as
Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and
Symantec's enterprise security business to bolster its offerings in
infrastructure software.
Comments
Post a Comment