While small-cap start-ups and all revenue/no profit tech stocks have been suffering, those that provide needed products and services still make sense for long-term investors. And you can’t get more needed than technology’s backbone – semiconductors. For our latest Best Dividend Growth Stocks Model Portfolio pick this is wonderful news!
Our pick is a major producer of a wide range of specialized chips, including those needed in automation, power control and battery management systems. This focus puts it in the driving seat for some of technology’s biggest trends like robotics, the internet of things (IoT) and electric cars. As such, our pick has a long runway for growth. But aside from this trend-induced growth, our pick has a steady side as well. Basic chips provide plenty of steady cash flows to support nearly two decades’ worth of dividend growth.
This diversification makes our pick one of the more powerful plays in the industry – one that supports plenty of shareholder rewards. Watch for when the stock goes ex-dividend on Friday, August 26 (estimated date).
In order to make room for our semiconductor pick as well as a diversified utility, we’ve reduced exposure to a materials firm as well as two consumer staples picks.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
