With interest rates for five-year certificates of deposit (CDs) hovering just above 1%, and even the 30-year U.S. Treasury paying a scant 2.7%, dividend paying stocks, especially those from companies with solid business models and earnings track records, are being viewed as safe havens.
With this in mind, Next Inning Technology Research Editor Paul McWilliams decided to evaluate a list of dividend paying tech stocks to see if an investment strategy that targets income (a high relative annual dividend yield), value (a low relative average price to earnings ratio), and a better than market growth potential could be developed. With a goal to top the S&P500 in each of these three fundamental categories, McWilliams calls this the "Triple Crown Tech Portfolio."
In NextInning.com's new report outlining the dividend-focused "Triple Crown Tech Portfolio", offers deep analysis of tech blue chips like Apple (AAPL), Microsoft (MSFT), Intel (INTC), Cisco Systems (CSCO), and IBM (IBM).
Here is just a tiny sample of what Editor Paul McWilliams wrote in his new report:
"One of the more interesting things I've observed as prices for tech stocks drifted lower following the late March 2012 peak and investors more recently have began to worry about slowing personal computer sales, is the resilience of Intel. While the NASDAQ is down 8.3% from its 2012 high, Intel is down only 6.6%. Year to date, Intel investors have done even better. Including $0.44 in earned dividends, Intel investors are up 14.5% for the year versus the NASDAQ, which is up only 10.3%. I believe one of the factors contributing to Intel's relative strength is its solid annual dividend yield of about 3%, and its demonstrated commitment to increase its dividend over time..."
McWilliams' "Triple Crown Tech Stocks" report is the product of extensive analysis:
-- McWilliams' analysis begins with 28 high-yielding tech stocks, including Apple, Microsoft, Intel, Cisco, and IBM, and analyses those stocks according to seven key metrics.
-- The candidate stocks are narrowed, through in-depth valuation analysis and evaluation of growth prospects.
-- Critically, McWilliams' report outlines which of these tech stocks are likely to maintain and grow their dividends, providing a source of wealth for investors for years to come.
-- McWilliams goes "beyond the data" to provide unique insights about these candidate companies, insights that derive from his experience as an industry insider and his extensive network of tech sector field contacts.
-- The result is a list of 14 high-yielding tech stocks and an accompanying allocation strategy that lay the groundwork for a new approach to tech sector investing that will help investors meet their goals in the long term. McWilliams' "Triple Crown" approach is designed to beat the S&P 500 in all three categories: yield, value, and growth potential.
-- McWilliams has a strong track record. On March 24th, he issued a warning that we would soon see the massive first quarter rally come to an end and, with that, tech stock prices fall. The NASDAQ hit its 2012 peak only three days after McWilliams' warning and, since then, the first quarter gains have evaporated. Ahead of the market opening on June 18th, McWilliams released his updated "Strategy Review" that provides his outlook for the second half of 2012. This is another report investors won't want to miss.
-- McWilliams' smart calls on Apple have also been in the spotlight recently. McWilliams first suggested considering Apple as a good speculative investment in June 2003 at the split adjusted price of $9.85. As Apple moved above the $600 level for the first time earlier this year, McWilliams advised Next Inning readers to consider diversifying away from Apple and locking in the 6,000% profit. McWilliams' most recent reports on Apple address whether Apple investors should consider trimming stakes further on any move above $600.
The Next Inning model portfolio is up 263% since its inception versus 49% for the S&P 500. Click here to start your free 21-day trial membership to Next Inning Technology Research and get McWilliams' in depth reports, earnings previews, and real-time trade alerts.