Dividends and investing in the tech sector momentum

After the markets fell because of the COVID 19, they rebounded, but in every market there are some winners and losers. The technology sector has been increasing in value and hopefully in your portfolio there are technology stocks. When a group is moving ahead others, it is called momentum, the trick is which stocks in the group are the better ones to own.

Cary Christie at Trading Central came up with some answers and his criteria was:

large cap technology stocks or those with a market capitalization of $4 billion

stocks which had a positive percentage return over 52 weeks and in mid May over the past 4 weeks

P/E Ratios, Dividend ratios

Company Mkt Cap 1 Yr Price 4W Price YTD Price P/E Div Recent

($ bil) Perf % Perf % Perf % Yield Price $

Cognex Corp 10.4 39.0 25.2 8.8 84.2 0.4 60.98

Enphase Energy 7.5 299.5 67.8 130.9 60.6 n/a 60.16

Adobe Inc 183.7 37.3 13.9 15.7 57.9 n/a 381.30

Trade Desk 13.6 48.5 21.7 14.3 116.9 n/a 296.28

Fortinet Inc 23.2 74.1 39.6 34.6 66.8 n/a 143.70

Intuit 75.6 18.2 10.1 10.8 46.9 0.7 290.0

Microsoft 1,399.6 45.7 7.0 17.1 32.6 1.1 184.80

Marvell Tech 19.2 29.7 8.7 9.1 n/a 0.8 28.97

Splunk 26.0 18.5 24.4 9.6 n/a n/a 164.06

The chart above gives you some names to begin to consider and you can lower the capitalization to look at lower cost stocks. The important thing to note is some stocks have gone up since the crash in March, there are opportunities in every market. As you continually do your homework, you will have names which to buy, hold and sell.

Linking to dividend paying stocks, the economy has been in an upheaval for a considerable time. Similar to all things, as you look around with what programs you use, your companies and suppliers use, you will see opportunities. You can buy an index, which gives you a base to build, but it also means doing homework to see what companies are executing on their business plans.

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

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