I love being right.
I was right about tech stocks – as a group and on dozens if not hundreds of individual plays as well.
I was right about legal cannabis stocks.
And I'm right on cryptocurrencies and blockchain technology.
But sometimes I love being wrong, too.
Let me explain…
As a longtime Silicon Valley insider with a strong track record of picking the fastest-growing stocks in the market, I have shied away from dividend plays.
And I was wrong about that.
Fact is, in "Old Silicon Valley," dividends were held suspect – shunned even. That's because fast-growing firms need to send most of their cash flow back into R&D and finding new growth opportunities.
So I felt that when a tech leader started to pay dividends, it was a sign that senior management had decided to play it safe rather than advance more breakthrough products.
But all that is quickly changing in the "New Silicon Valley." That's because high-tech firms are becoming some of the best dividend stocks to own, while still offering lots of new growth.
Today I'm going to show you why that's true.
Then after that I'll reveal five ways you can play this new trend to pile up both share-price gains and dividend cash…
Catch This Wave Before It Breaks
These days, tech leaders are awash in cash. Just the profits they are holding overseas – much of which is being repatriated as we speak due to the Trump tax cuts – amounts to several hundred billion dollars.
Many of these firms already have profit margins well over 20%, meaning that for every $1 in sales, $0.20 goes right to the bottom line.
Couple that with the recent $1.5 trillion tax cuts for corporations and you have a sector that will continue to see rising cash flows. And the good news is that they clearly have enough money to plow back into product development and reward shareholders.
For us, the timing couldn't be any better. See, with the market's return to volatility, we're on the hunt for stocks that will remain more stable.
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And the market could get even more turbulent thanks to:
- The Federal Reserve saying it may raise interest rates as many as four times this year
- Worries about higher inflation rates
- President Donald Trump's promise of steel tariffs and the accompanying threat of a trade war
So I don't blame you if you're looking to add some stability – in the form of dividends – to your portfolio in addition to the growth stocks I usually bring you here. I'm doing the same thing.
Today I'm keeping that promise.
I have selected five Tech Dividend Winners that offer yields over 3% right now. Plus, I believe that all five "candidates" here will be boosting those yields even higher over the next two years or so.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.