OUR BIG, CHEAP TECH IDEA IS RAMPING HIGHER
The big uptrend in the technology sector looks ready for another “leg up.”
For several years now, we’ve recommended some of the safest, cheapest names in the tech sector. We’ve noted that companies like Microsoft (MSFT), Apple (AAPL), Intel (INTC), and Cisco (CSCO) are sitting on mountains of cash.
So there’s plenty of room for increasing dividend payouts to investors.
Earlier this month, “internet plumbing” giant Cisco said it plans to raise its quarterly dividend by a whopping 75%.
The increase brings Cisco’s annual dividend yield close to 3%. Not bad for a stock trading at a bargain-basement valuation of nine times forward earnings.
And the trend is up.
The Big Tech sector fund XLK broke out to an 11-year high last week.
XLK is a “one-click” way to own all of the big names in tech, like Apple, Microsoft, and IBM. Many of the fund’s holdings are slowly but surely upping their dividend payouts to investors.
Considering the solid fundamentals and cheap valuations, there’s no reason for this uptrend to slow down anytime soon.
– Larsen Kusick
Source: Market Notes