No doubt, high-dividend paying stocks look quite attractive now – especially
in light of the recent market volatility and rock-bottom government bond yields.
Yet many of these kinds of companies have few growth opportunities. But there is
one category that could be an exception: large tech stocks. Thus, if the economy
does manage a comeback, there should be some nice capital gains for investors.
So which stocks look interesting? Here's a look: Intel (Nasdaq: INTC ) –
4.2% dividend yield: Even though the company has been slow with its mobile
strategy, the fact is it remains the dominant global player in semiconductors.
It has thousands of top-notch engineers and a variety of state-of-the-art
manufacturing centers. In fact, with its huge cash flows, Intel is in a good
position to acquire companies. For example, one key deal was for Infineons
(Nasdaq: IFNY ) mobile chips division. There was also the purchase of McAfee,
which is a big provider of security software. This is definitely a long-term
growth opportunity. All in all, Intel's valuation is fairly cheap. The
price-to-earnings ratio is only 9. Microsoft (Nasdaq: MSFT ) – 2.6%: The
company has been mostly reactive over the years. It did have the foresight to
invest in Facebook, and for the most part Microsoft's Internet business has
been a dud. Unfortunately, the same is true for its mobile software division,
and the company's partnership with Nokia (NYSE: NOK ) does not look like a
winner. Despite all this, Microsoft still has several powerful businesses.
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