After the last few weeks of violent market swings – way up one day, way down the next – you might feel like there are no new moves you can make.
While it can seem a bit scary out there, that's not true.
When volatility hits, as it has since late January, one smart move you can make is to start buying companies that richly reward their investors through dividends and stock buybacks. These are companies that are going to pay off no matter the noise in the markets.
"But!" – I can hear you folks crying – "dividend stocks are boring." You're looking for fast-growing Silicon Valley startups and companies in frontier fields like biotech… legal marijuana… and the blockchain and cryptocurrencies.
As a growth-centric investor, I too used to think of dividend payers as firms that have lost their cutting-edge fervor.
Well, that was then. This is now…
Fact is, tech leaders are generating so much cash these days that they can boost R&D spending on new innovations and pay higher dividends. And thanks to the Trump tax cuts – which encourage the repatriation of cash held overseas – those companies are now piling up even more cash.
So I've been looking hard to find you folks some unstoppable trendsetters that are also big dividend payers.
And I just spotted a biotech leader that – almost immediately after calculating its lower tax rate – announced that it's boosting its dividend by an amazing 35% to a rate of nearly 3.3%. Not only that, but it's also going to start buying back $10 billion of its stock.
As good as that sounds, there's a lot going on here on the innovation/growth side as well.
In fact, on a share-price basis alone, I believe it's going to double your money in just a few years.
All that could be cash in your pocket.
However, there's one more thing you need to know.
To collect that cash, this is a play you need to make by April 13.
The Second Wave
When we spoke on Jan. 26, I told you that a tidal wave of cash was headed directly for the tech sector because of President Donald Trump's corporate tax overhaul. And I said that tech companies would spend much of that cash on dividends and stock buybacks.
So like I said, you folks are going to be a major beneficiary of that surge. In fact, I pointed out that 11 of the top 16 firms that will repatriate foreign cash are in high tech or the life sciences – two of our biggest profit targets at Strategic Tech Investor.
At the time, I said the single biggest winner here would be Apple Inc. (Nasdaq: AAPL) – and its investors.
Silicon Valley Breakthrough: This tiny company's revolutionary new device is expected to "change the world on a scale hardly seen in human history." It could hand early investors a $78,000 windfall in the process. Here's how to get in…
Today, let's address the flip side of that coin with a life sciences firm set to richly reward its investors.
In our twice-weekly chats, I rarely give a hard deadline for making a strategic investment. But with AbbVie Inc. (NYSE: ABBV), I'm departing from that practice.
Like I said, this Chicago-area biopharmaceutical leader is boosting its dividend by 35% – and the first installment on that $3.84-per-share dividend is payable to shareholders on May 15.
But here's the thing…
To qualify, you have to invest no later than the close of business on April 13.
Need one more reason to invest?
Thanks to the Trump tax cuts, AbbVie will have an effective tax rate of just 9% for 2018. That's among the lowest of any major U.S. firm.
And it's a key reason why AbbVie recently upped its earnings guidance for this year – up to a high of $7.33 a share from a previous high-end forecast of $6.55.
Of course, AbbVie is much more than just a great dividend play. We don't do dividend "pure" plays here.
So to get a sense of why this stock can double your money in just a few years, let's run it through the five "filters" of Your Tech Wealth Blueprint.
Take a look…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.