There are more than 331 dividend-paying tech stocks waiting for investors. If you’re new to investing, or you’re considering branching out from your usual stocks, you may be considering technology stocks.
If this sounds like you, read on to learn all about the best up and coming stocks in the tech sector in 2019.
Why Invest in Tech?
Many people are hesitant to invest in tech stocks since they’re often considered to be more volatile and difficult to understand. This isn’t necessarily true, however. In fact, many of the up and coming stocks in this industry actually have relatively simple business models.
Consider Apple, for example. most of its revenue comes from hardware, however, it also has a massive cash hoard it can use to pump growth. And Facebook’s revenue mostly comes from advertising, and it limits how many ads are displayed- reducing volatility and increasing demand.
Up and Coming Stocks to Invest In
Getting excited about the opportunities available with tech stocks? Here are some of the main stocks to consider in 2019:
Amazon
You’re probably not surprised to see Amazon on this list, after all, the company is gradually taking over the world. Not only is it the largest retailer online, but it also produces TV series, runs a cloud-computing business, and is responsible for Fire TV — the number one media player for streaming.
Remember: Investing in stocks is for the long haul. Anyone investing in a tech stock like Amazon should be ready to weather the short-term volatility. Hold it for decades, and you’re likely to come out a winner.
Alphabet
Alphabet is Google’s parent company. While Google is raking in billions each month in ad sales, Alphabet is also responsible for a number of other ventures. These include health care, broadband, self-driving cars, and apps.
Alphabet is truly cutting-edge and represents everything that’s exciting about tech stocks. It’s invested in more than 300 innovative businesses, including Nest and Uber.
Facebook didn’t have the best year in 2018.
However, technology profits for companies like Facebook are expected to continue to increase this year. Sure, we may see earnings growth decelerate as video ads decrease. But as the company continues investing in news-vetting and cybersecurity, Facebook definitely isn’t going anywhere.
Apple
No list of tech stocks could be complete without Apple. Not only is it responsible for many of the tech products we all use and love, but its massive. And this size makes it much easier for it to negotiate leverage with its suppliers.
Again, this is the type of stock you buy and hold, and you’ll need to keep a cool head when the stock dips every once in a while.
iQiyi
This is the leading video-streaming platform in China. iQiyi is one of those high-risk, high-reward (potentially) stocks, with 80.7 million subscribers. Keep in mind, this is still an unprofitable company, but it’s continually investing in content so it can grow its market share in China.
This is an excellent opportunity for investors looking for a big bet that could pay off. For those who prefer a little less volatility, it’s definitely well worth keeping an eye on this stock.
Adobe
Adobe is still one of the best stocks out there for people who want to invest in tech. This company is hugely focused on growth right now, and investors should pay attention to its suite of products.
These products include Dreamweaver, InDesign, Premiere, Illustrator, and Photoshop. Not to mention, it has switched to a cloud-based subscription model. This recurring revenue is good news for both the company and investors.
Alibaba
Alibaba’s recent fall is actually good news for investors hoping to buy low. While the slowing economy in China impacted its stock, the company is still seeing massive growth.
In fact, Alibaba is currently growing faster than Amazon did when it was the same size. This is the Amazon of China, making it the perfect investment if you wish you had begun investing in Amazon years ago.
Baidu
Another excellent tech stock from China, Baidu is known as the country’s Google. While this search engine did have a rough 2018, it still has its fingers in many pies. One of these pies includes autonomous driving software, which Volvo will be using to power its robotaxis in China.
This company also has a majority stake in iQiyi, making it a good option if you’re not yet ready to invest in the video streaming company.
NXP Semiconductors
This company is all about chips. The kind of chips that connect cars, provide greater cybersecurity and allow the Internet of Things to run.
Based in the Netherlands, NXP is globally diversified, and stock prices fell in 2018. This is because Qualcomm tried to buy the company, but China refused to approve the sale.
However, even with the slump, shares trade at $110. This makes it an excellent tech stock if you’re planning to invest in 2019.
StoneCo
Haven’t yet heard of StoneCo? Now’s the time to get up to date. This is a young, growing Brazilian company in the fintech industry.
Where it gets interesting, is when you look at its backers, which include 4G Capital, Ant Financial (from Alibaba), the Walton Heirs, and Berkshire Hathaway.
This is a similar company to Square which operates in the U.S. It sells digital payment solutions, software, and point-of-sale hardware. The growth for this company is incredible. Check out its returns in 2018, and you’ll see why it’s such a good bet in 2019 and beyond.
Buy Your Stocks Today!
One of the great things about investing in tech stocks is the chance to be at the forefront of innovation. The above companies are changing the world we live in, and they’re providing investors with an excellent opportunity for exceptional returns at the same time.
If you’re considering investing in these up and coming stocks, be sure to do your homework and diversify your stocks. Make sure you have the money to invest and commit to the long-haul.
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