Technology is a rapidly changing industry, so investors need to stay on top of the latest trends. Here at Industry Leaders we spoke to experts to learn about the best long-term tech stocks that you can invest in today. We have ranked them based on their dividend yield and earnings per share growth rate over time. Keep reading to find out which companies made our list!
The best long-term technology stocks are those that have a solid financial track record over the past several years and whose business model has proven to be sustainable.
These companies can shoot up very quickly based on good news, but it is essential not to get too excited about their stock prices as they could take a nosedive back down just as fast. On the other hand, several technology companies have proven themselves and remain firm in their industry over the long term. Some of these include:
Apple Inc. (AAPL)
One of the world’s most valuable companies with a market capitalization of $86 billion, Apple has had significant growth over the past several years and continues to dominate its sector. The company produces high-quality products at competitive prices and offers consumers unparalleled customer service and innovative and practical apps.
International Business Machines (IBM)
IBM has been an industry leader in technology for decades, having had significant growth over the past several years despite a world that is becoming increasingly more dependent on technology. The company continues innovating with its products while maintaining traditional values such as excellent customer service and a work culture.
Cisco Systems (CSCO)
This company has been a dominant player in internet protocol networking technology for decades and is still considered one of the top companies in its industry today. It continues to have significant growth and remains a leader in its sector.
Oracle Corporation (ORCL)
Oracle is one of the world’s leading providers of software and technology to industry. The company has continued to grow significantly over the past few years, despite changes within its sector that have caused some companies to lose their dominance or even fail.
Google (GOOGL)
Search engine giant Google has become a household name and one of the world’s most valuable companies, despite its relatively young age. It continues to have solid financial growth over the past several years while remaining innovative in changing how consumers use technology every day.
Intel Corporation (INTC)
Intel continues to have solid financial growth and remains a dominant player in its sector. However, the biggest challenge for Intel is the rapidly changing nature of technology as it attempts to keep up with new developments that threaten to make it obsolete. While these challenges may be complex, they also mean that there are many opportunities for the company to grow and improve its prospects.
Microsoft Corporation (MSFT)
This company has a market capitalization of $412 billion, making it one of the best-valued companies in the world today. It continues to have solid financial growth over several years and significant opportunities for revenue generation from the new best long-term tech stocks products such as Xbox and Windows.
BENEFITS OF LONG-TERM TECH STOCK INVESTMENTS
The best long-term tech stock investment depends on your needs and the kind of diversification or specific investments you need for your portfolio. While mutual funds are less risky than investing in individual companies, they come with their share of fees that you should watch.
By investing in long-term tech stocks, you can diversify your portfolio and not be vulnerable to the market. Many people do this by buying mutual funds such as index funds which own a wide range of technology companies, rather than focusing on one or two. By spreading out their investments like this, they avoid any significant dips in the market. There is also potential for good returns over time without too much risk depending on the investment strategy that is right for your portfolio.
RISKS OF BUYING TECH STOCKS
There are high risks if you don’t diversify and invest in mutual funds, and medium if you want to own certain types of technology stocks or individual companies that can be very expensive. Owning individual stocks is risky as well and may not diversify your portfolio enough for you. You also have to monitor them more carefully than a mutual fund included in your investment plan on an ongoing basis rather than just once at the beginning of the process. And if you want to own certain types of technology stocks, it can be costly.
