Tech Staples to Make You Rich
Stocks were off to the races early Friday, which sets us up for another record-setting week.
The phrase of the month for markets is new record highs. And we’ve seen a lot of them recently. In fact, there were 18 record closes for the Dow in November and December alone.
Leading the way of course were tech stocks. The tech-heavy Nasdaq also notched numerous new highs as we closed out 2019.
In the wake of our trade war with China, along with 2019’s soft IPO market, which brought investors broken-horned unicorns… the continued success of tech stocks says something very important about these stocks.
Microsoft… the New Clorox?
You probably have more silicon in your house than cleaning products.
So I ask, are computer chips or Clorox products more of a consumer staple? Staple stocks are noncyclical. This means they don’t jump (or crash) on seasonal demand or headline noise.
Well, as tech smashed through to new records most of last year while facing numerous acute headwinds, it’s safer to say some tech stocks aren’t cyclical either.
We could go back and forth for days on the minutiae of the argument, but my point is in a tech-fueled world, we need to at least consider some tech stocks are more like hybrid tech stables.
Just take a look…
Some of these big names in tech are starting to pay dividends, a classic characteristic of defensive staple stocks. Microsoft (NASDAQ: MSFT), for example, pays a 1.25% dividend and has grown that for 16 years now.
Clorox (NYSE: CLX) does pay a better dividend at 2.7%, but when you compare their 2019 gains… it’s clear which stock was the better to own in 2019.
MSFT wins, hands down. And you get an OK dividend to boot with this tech staple.
What other stock am I considering today as tech staple?
Apple Shares Seem to Have No Limit
Buy a share of Apple (NASDAQ: AAPL) a day, and I can’t promise you won’t have to see the doctor… but you’ll be able to afford the best one in town.
Apple, that other trillion-dollar company, has grown from a quirky but innovative tech startup to a media-producing, software-licensing, innovative platform-designing tech behemoth.
Positive growth year after year, coupled with a business model that allows them to position their products as a tech, fashion and service all at once, is all you need to know as to why Apple shares appear unstoppable.
Just look at the one-year weekly chart!
And if you owned AAPL in 2019, you also collected a scant but income-earning 1% dividend on top of that amazing growth.
If you’re a tech investor and you own other companies but have not bought stakes in these two… stop and reevaluate everything you’re doing…
MSFT and AAPL are tech staples you have to own for the long haul.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily