The pace of innovation in the technology sector has been truly breathtaking over the last few years. And one of the biggest trends continues to be data analytics and artificial intelligence (AI). As computing technology improved, we’ve been able to use AI to do more complex tasks. Science fiction has become science fact. Luckily, our Best Dividend Stocks List pick in the technology sector continues to set itself up for the future.
Our pick was one of the original dot-com boom superstars and it used that status to successfully transition into the cloud and wireless networking. This has allowed our pick to become a dividend giant featuring immense cash flows and one of the largest dividend/buyback programs around. The firm recently increased its dividend by another 6% and upsized its buyback program to a whopping $15 billion in stock.
See the original article on our pick here.
Management at our pick continues to see the future and pivots toward a more AI-focused future. Already a leader in networking, 5G and the Internet of Things (IoT), our pick has recently made several acquisitions that strengthen its artificial intelligence applications across its networks. This includes digital voice assistant applications and automated note-taking capabilities. Soon, users of its products will be able to simple query their networks/databases with their voices.
This is a major first-mover advantage for our pick.
Even better is that its management continues to offer more of these products on a subscription basis. These recurring revenues will only strengthen its cash flows and dividend potential further. All in all, our pick has made, and is still making, the right moves to keep it relevant far into the future. This continues to make it a prime candidate for dividend investors.
To summarize, here are five reasons why you should own this stock:
- Recorded more than $50 billion in sales for all of fiscal 2019 – a 7% year-over-year increase.
- Continues to focus on higher-margined subscriptions to generate revenues, with more than two-thirds of its sales last quarter coming from recurring sources.
- Pivoting towards AI-focused products, with several key acquisitions over the last few months.
- Has raised its dividend every year since 2011, with its latest increase clocking in at more than 6%.
- Healthy payout ratio of 52% and yield of 2.95%.
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