Tech stocks are the hottest trends in the market when the 21st century came. This 2020, expect that their demand will continue to be on the rise.
Gone are the days when tech stocks are avoided because of their high risks despite their high rewards. As technology has now improved a lot, tech stocks have become more in demand, thanks to their decent yields.
If you want to tap into the world of tech stocks, here are some options you can consider adding to your investment portfolio?
Microsoft Corp.
One of the world’s first ever trillion-dollar companies, Microsoft still enjoys the same long term benefits that made back in the 90s. This powerhouse name remains to be among the top tech stocks you can buy and own in 2020, about 25 years after Windows 95 got introduced to personal computers. This is a solid proof that Microsoft has an undeniable longevity. The upgrade cycle of Windows allows guaranteed constant revenue combined with the wise decision of turning Microsoft Office into a subscription product based on the cloud.
Adobe
Adobe, the application software giant, is yet another tech stock that you can consider buying. The company is still seeing a long term advantage, thanks to its suite of some of the most iconic creativity apps including Photoshop, Premiere, Acrobat, Illustrator, and InDesign. It is no doubt a must-have software for a lot of professionals and industries and the company’s cloud based SaaS model helps bring a high margin constant revenue, the ultimate dream of every investor.
Dell Technologies
Yet another popular business introduced during the 1990s that pioneered the mainstream journey of personal computers, Dell, after much evolution and diversification, has become attractive enough to be among the top tech stocks to own in 2020. The company is no longer just about computers alone as this now has its tentacles in storage, servers, the cloud, and data center, a diversified portfolio composed of business units that are enjoying a modest growth. The commercial PC business picked up steam not too long ago making it a must-add stock to any portfolio.
AT&T
AT&T, the media and communications giant, might not be growing as big as Microsoft or Adobe but it doesn’t mean that it isn’t a good tech stock to consider. The company boasts of over 100 million customers across the United States that are paying for their broadband, mobile, and TV services. Bringing a relative stability, it is expected that AT&T will have a free cash flow worth $28 billion in 2020.
As one of the few tech names included in the list by US News of the best stocks to own in 2020, Facebook definitely deserves a spot as one of the best tech stocks you can buy this 2020. This trades 32 times earnings, reasonable enough for a company expected to grow up to 42% of profits this year. Even though the social media giant is already boasting of around 2.5 billion active users every month, this figure is still growing by around 8% every year.
These are the top 5 tech stocks to own this 2020 that will surely diversify your portfolio in many ways.