High R&D fuels their gains and your income

Article Excerpt

Tech stocks are highly cyclical, which adds risk. They are also vulnerable to rapidly changing technology and trends. That’s why it’s best to stick with market leaders like these two, which have the ability to finance big investments in research and development—and pay dependable dividends! MICROSOFT CORP. $411 is a buy. The software giant (Nasdaq symbol MSFT; High-Growth Dividend Payer Portfolio; Manufacturing sector; Shares outstanding: 7.4 billion; Market cap: $3.0 trillion; Dividend yield: 0.7%; Dividend Sustainability Rating: Highest; www.microsoft.com) last raised your quarterly dividend by 10.3% in December 2023, to $0.75 a share from $0.68. The annual rate of $3.00 yields 0.7%. Microsoft continues to benefit from strong demand for its Azure cloud computing service and artificial intelligence software tools. The company’s revenue in its fiscal 2024 fourth quarter, ended June 30, 2024, rose 15.2%, to $64.73 billion from $56.19 billion a year earlier. Earnings also gained 9.8%, to $22.04 billion, or $2.95 a share, from $20.08 billion, or $2.69. The stock is up 27% in the…