At this point, nobody knows
when the coronavirus will no longer be a threat and
the market recovers. But when that happens,
technology will lead the way. Why?
Look at how much the virus crisis has changed the
pattern of our lives. We’re working from home, ordering more stuff
online, watching more movies and even socializing online. Those
activities require products and services provided by tech sector
Many of these habits that I just mentioned will
probably stick with us, at least to some degree, when life goes back
If so, for investors, the
tech sector will be the place to be. If you agree, here are
six stocks and one Exchange Traded Fund
(ETF) worth considering.
Seven Tech Plays
Amazon.com (AMZN): When it comes to shopping,
online has been steadily grabbing share from brick and mortar stores
for some time, and recent events have only accelerated that trend.
But there’s more to this story. Where most large corporations once
operated their own on-site data centers, most are now shifting to
remote data centers, commonly referred to as “the cloud.” Guess who
is the largest provider of cloud services? None other than Amazon
Web Services (AWS), a highly profitable operation that generates the
cash flow that funds Amazon’s retail operations.
Microsoft (MSFT): Microsoft has dominated the
PC software market as long as most of us can remember, but now most
of its growth is coming from its relatively new cloud data center
services business, which now accounts for around 50%
Alphabet (GOOGL): Operating under the Google
brand, Alphabet dominates the internet search business and that
operation, combined with YouTube, makes it the world’s largest
generator of internet advertising revenue.
Facebook (FB): Between its Facebook,
Instagram, and WhatsApp applications, Facebook with over 2.7 billion
users, dominates the internet social networking space. Because it
collects considerable user data, Facebook offers advertisers a
better ability to target their ads than other media.
Qualcomm (QCOM): A major producer of
semiconductor chips used in communications and storage applications,
Qualcomm is expected to be a major player in the rollout of 5G
(higher speed) products. Pays dividends equating to a 3.4% yield.
KLA Corp. (KLAC): No matter
who sells the most chips, someone has to
develop and supply the process control and yield management systems
needed to produce them. KLA with a 50%+
market share, dominates that market. Dividend
First Trust NASDAQ Technology Dividend ETF
(TDIV): If you’d prefer to avoid single-stock risk, this ETF tracks
the performance of most of the big players that pay dividends
including Microsoft, Intel, Apple, Cisco Systems, Qualcomm and
Broadcom. Pays dividends equating to a 2.8% yield.
These are my ideas. But do your own research before
you buy. The more you know about your stocks, the better your