For some investors and traders, technology is a taboo sector due to the area’s volatility and for the reason it doesn’t provide huge cash flows.
However, the pandemic has demonstrated that having some of these vital tech stocks in your portfolio is very important, even for long-term investors. When lockdowns, and other restrictions severely damaged traditional companies’ revenues, tech heavies rode the wave of success, since they provided services that helped modern life going.
Keeping this in mind, you can always pick less volatile and more mature tech companies that pay growing dividends each year and fit well in any retirement portfolio. Let’s take a look at a stock that makes a good case for long-term investments and pays substantial dividends.
For investors, one of the critical factors to bear in mind when picking a stock is the company’s ability to pay dividends in both great times and crises. Microsoft (NASDAQ:MSFT) meets this criteria.
The stock has been a great investment for dividends-seeking investors in past years. During the last decade, Microsoft’s per share dividend rose 14.30% per year. With an annual dividend yield of just below 1%, Microsoft grants a quarterly dividend of $0.56 per share.
In addition, don’t forget that Microsoft is still growing, while offering great upside potential, too. Including dividend payments, Microsoft has delivered 333% in total returns over the past five years.
More so, there is a good chance that this Washington-headquartered company will continue increasing its payout as its growth momentum keeps flourishing. During the pandemic, demand surged for its cloud-computing services, video gaming and computers, helping the company to make massive profit.
Such giants as Microsoft have the power to defend their businesses and pay you for the rest of your life.