These Tech Stocks Could Help You Retire
Building an investment portfolio for retirement can be a bit intimidating simply because of the fact that your future depends on it. Choosing the right types of holdings can help you create financial stability that will allow you to truly enjoy your golden years. Most investors that are buying stocks for retirement tend to focus on quality companies trading at attractive valuations. Dividend stocks and businesses that have strong balance sheets are also good options to consider, but what about technology stocks?
While you might be under the impression that tech stocks are riskier than many other areas of the market, the truth is that without them, your retirement portfolio will miss out on exposure to some of the best and brightest companies in the world. Given how technology is becoming more important with every passing day and how much growth the sector has to offer investors, we’ve decided to put together an overview of 3 tech stocks to buy for retirement below. Each one of these companies is a market leader and has the financial stability to help you sleep well at night, even during periods of market volatility.
Let’s take a further look below.
We start our list off with a true tech powerhouse and the perfect type of stock to include in a retirement portfolio, Apple. With one of the strongest balance sheets in the world, a long history of developing successful products that keep customers coming back, and consistent dividend payments, it’s a great option to hold over the long run. Apple
develops and manufactures smartphones, tablet devices, computers, and portable digital media players and also sells a variety of software, services, and accessories. Products like the iPhone generate billions in revenue for the company, which is incredible considering that the smartphone industry still has plenty of room for growth.
Last quarter, the company posted all-time record revenue of $123.9 billion, up 11% year-over-year and 49% sequentially. While Q1 was certainly impressive for the consumer electronics giant, the company’s management guided for another record quarter in Q2, which tells us that Apple is poised for a truly monumental fiscal year ahead. Investors should note that Apple has been one of the strongest names in tech this year even amidst heavy market volatility, which speaks volumes about why this is such a quality holding.
Another great tech stock to consider adding to your diversified portfolio for retirement is Adobe
, a provider of software applications used for creative content creation and one of the leading providers of marketing automation and e-commerce applications. This company stands out given its dominant market position in content creation software and PDF file editing, which has helped Adobe build a strong stream of recurring revenue through subscriptions. Innovative software like Photoshop and Illustrator are vital to clients of all sizes, including creative professionals, consumers, and enterprises, and investors should expect the company’s dominance to continue for years to come.
It’s worth mentioning that shares of Adobe are down over 23% year-to-date, which could end up being a nice buy-the-dip opportunity for long-term investors. The company recently posted Q1 revenue growth of 9% to $4.26 billion and completed the acquisition of Frame.io for $1.275 billion back in October of last year. This move further solidifies the company as a true force in digital video content and advertising creation, which is certainly noteworthy thanks to how the use of online media has become the new normal. The bottom line here is that if you’re looking for software companies that are building an empire, look no further than Adobe.
Finally, HP Inc is a tech stock that retirement investors should take a look at, especially if you are interested in generating dividend income for your portfolio. It’s a company that provides computers, printers, and printer supplies to businesses enterprises, and consumers around the world. Hewlett Packard
shares were in the spotlight recently following news that legendary investor Warren Buffett’s Berkshire Hathaway has an 11.4% stake in the company, which means it is the largest shareholder at this time. While investors should never buy a stock just because another successful investor is, a vote of confidence from Mr. Buffett is certainly not a bad thing either.
Investors interested in dividends should certainly be attracted to the 2.59% dividend yield here, while the 6.87 P/E ratio means that shares are a bargain compared to a lot of other options in the tech sector. There’s also a lot to like about how remote work is a trend that should benefit HP in the long run, as more people will look to purchase products like printers and personal computers for their home offices going forward.
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Before you consider Apple, you'll want to hear this.
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