Forget About Apple And Microsoft, And Buy These 5 High Tech Dividend Stocks

Seeking AlphaDividend Quick PicksForget About Apple And Microsoft, And Buy These 5 High Tech Dividend StocksOct. 7, 2020 3:50 PM ET|| Includes: AAPL, ADP, AMZN, AVGO, GLW, IBM, MSFT, NEAR, SPY, TXNby: Robert & Sam KovacsRobert & Sam Kovacs Long Only, Dividend Investing, Dividend Growth InvestingSummaryNot all stocks are appropriate for a dividends first approach.
While this doesn't mean they aren't good investments, they aren't dividend stocks.
Here are 5 high tech stocks which investors should buy.
Written by Sam Kovacs
Forget about Apple & Microsoft!
Some might ask: how could we? After all, I am sitting in a café, writing this article on a Microsoft (MSFT) machine. To my right, my girlfriend is working on an Apple (AAPL) machine.
The prevalence of these two companies, and their pervasiveness in our lives, needs no introduction.
Source: Open Domain
These companies run the show, and they've been doing it for a while. They are great businesses, and this shows in their performance throughout the pandemic:
Apple increased revenues by 10% YoY in Q2, EPS increased 18%. Microsoft increased revenues by 12.7% YoY in Q2, although EPS decreased because of non-operating reasons. But in the past 12 months, Apple's stock price increased 106% and Microsoft's stock price increased 53%.
In the process, they have now become mostly irrelevant to dividend investors.
Apple now yields only 0.7%. It has never yielded this little since it started paying a dividend in 2010, as is shown in the MAD Chart, which uses historical ranges of dividend yields to determine value of dividend stocks.

Source: mad-dividends.com
Apple has been growing the dividend at around 10% per year (although that was lower last year).
If you were to invest $10,000 in Apple at 0.7%, and reinvest the proceeds once a year for 10 years at the same rate, and assume 10% dividend growth, you wouldn't get a whole lot of dividends.

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