Tech stocks have felt the brunt of recent volatility inspired by rising interest rates and escalating trade tensions. But in these uncertain times, two tech companies holding up well are blue chips Microsoft (
MSFT - Free Report) and Intel ( INTC - Free Report) , both of which present favorable growth and income prospects.
Microsoft made headlines earlier this week, when it briefly surpassed Apple (
AAPL - Free Report) to become the most-valuable public company on the market. The software pioneer has not been immune from the aforementioned headlines, but it has fared better than Apple, Amazon ( AMZN - Free Report) , and others—thanks to a few key factors.
For one, Microsoft offers a uniquely diverse revenue stream. Whereas Apple is still largely dependent on the iPhone, Microsoft cashes in on everything from video games to personal computing and enterprise technology. One of its hottest growth catalysts in recent years has been the Azure cloud computing division, for example.
These businesses have put Microsoft on track to notch double-digit-percentage growth on the top and bottom line in the current and upcoming fiscal year. This is no simple feat for one of the world’s largest companies.
Microsoft is also one of the most consistent dividend performers in tech. The company routinely adds three to five cents to its payout every year, and the stock currently yields about 1.7%. This underscores Microsoft’s ability to serve as a stable place to store value in the stock market.
Similarly, Intel sticks out in what has become a volatile semiconductor industry. Wall Street is deeply concerned that the semiconductor super cycle is coming to an end, and many popular chip names have been battered. But Intel has held up better than most, as it offers Microsoft-like diversity, growth, and income.
The chip behemoth recently reported a strong quarter that included 39% EPS growth and 19% revenue growth. Intel also announced a $15 billion increase to its share repurchase plan in the past month. Moreover, income investors love its steady 2.5% yield and healthy balance sheet.
Make sure to check out today’s video for more info on these two stocks!
Note: Ryan holds shares of Microsoft in the Zacks Income Investor portfolio service.
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