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Looking for Technology Turnarounds: Opportunity in Dividend Payers?
Technology stocks have been weak in recent weeks. Even the two tech darlings, Apple and Google, have fallen more than 10% from their September highs. Is this a good time to buy and lock in tech stock profit?
Maybe. Technology stocks are notoriously volatile. One minute investors love them; the next minute they hate them. If you are interested in this space, we recommend avoiding the high-flyers. Rather, we suggest two more contrarian investing approaches. One approach, is to look at recent (and some not-so-recent) high-flyers that have come down to earth.
Our preferred approach is to focus on well-established tech companies that pay solid dividends. They may be less sexy than the latest darlings, but their stockholders get paid even if the sector remains in the doldrums for some time. In the complete version of this article, available only to Turnaround Letter subscribers, we discuss eight companies that all have solid market positions and their stocks yield more than three percent.
Yes, we know Apple pays a dividend. But we are not willing to recommend it around $600 a share because we think the stock will be in for a bumpy ride if the company can’t keep coming up with blockbuster products. (For the record, we did like it once. We recommended Apple stock in November 2002 at 7.80 per share, split adjusted. Of course we sold it too soon, but the purchase recommendation was still a good call.) This full article--and George's 8 related stock pick recommendations--are available exclusively to subscribers.
Read Part 2 of The Turnround Letter's Technology Turnarounds feature: "Former Internet High-Flyers" now.