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Listen to grandpa before investing in...tech?


It’s been an up and down year for some major tech names like Facebook and Twitter; so much so that chatter of “Tech Bubble 2.0” has grown even louder. Perhaps it’s time to take a look instead at “grandpa’s tech.” That’s the thought of Tom Lydon of ETFTrends.com.

“It’s not all about the go-go tech stocks. They’ve been down, hit real hard this year but it’s amazing -- dividends, cash flow, valuations in some of these old line tech stocks,” Lydon points out before giving examples like Microsoft (MSFT), Intel (INTC), IBM (IBM), and Cisco (CSCO).

As for an easy way to play them Lydon, as the name of his website suggests has a great ETF play in the space. “This First Trust Nasdaq Technology Dividend Index (TDIV) and it doesn’t have any of the high fliers in there. The Facebooks, the Twitters, those are all kind of pushed to the side. You’ve gotta hit the valuation numbers, the dividend number, the cash flow numbers to be able to be a component of this index.”

The ETF in question has the added bonus of getting you paid while you wait for those high flyer growth names to get their mojo back.

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