Dividends and Nevermind the FANG group: Chip stocks prove to have more bite than most tech giants

Most investors should know what the FANG (Facebook, Amazon, Netflix and Google) because these stocks have been some of the best performing stocks for the past decade. There is another group of tech stocks which has been performing extremely well and need to be on your watch list, if you do not already own them. The semiconductor stocks led by Nvidia Corp, Micron Technology, Advanced Micro Devices and Lam Research Corp have gained about 50% in the past 12 months. If your portfolio is not up by 50% then you need to consider these stocks.

Part of the reason for the chip sector is wherever you look there is a chip in the mechanical device. As consumers want their gadget to think for themselves or beginning of artificial intelligence; look beyond the phone and computer and you will see the potential for chips and the large chip maker.

Apple is designing its own chips. Google is designing its consumer-device chip and has designed its own co-processors to help with certain functions it its data centers.

Linking to dividend paying stocks, as our society transforms itself and all the devices we use there is money to be made and some of it is in the chip makers. If you do not own the stocks, put them on your watch list, and when there is a correction you can buy them at a lower price or use some of the dividends you receive to begin to buy. Then you will have the best of both worlds – growth and dividends.

There are more questions than answers, till the next time – to raising questions.

 

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