Dividend-paying Cloud Stocks to Purchase Before Sector’s Recovery

Dividend-paying cloud stocks to purchase before the sector’s recovery feature companies trading below their recent highs as investors rotated holdings from growth investing toward value.

The dividend-paying cloud stocks to purchase after a recent tumble in the technology sector include companies that are showing strong growth. However, the dividend-paying cloud stocks to purchase slid when many investors began to shift to then-undervalued sectors.

The pullback in share prices is offering investors who want to buy cloud stocks a chance to do so at a discount, compared to prices just a few months ago, even though the financial fundamentals of such businesses have barely budged. Despite the recent drop in technology stocks, the sales growth of cloud companies — providing software and services on the internet instead of locally on a computer — have avoided big plunges.

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Dividend-paying Cloud Stocks to Purchase Include Marvell Technology Group

Dividend-paying Marvell Technology Group Ltd. (NASDAQ:MRVL) received a buy rating and a $60 price objective from BoA Global Research. The valuation is supported by projected 33% longer-term compounded annual earnings per share growth and driven by potential success in 5G in the next few years. BoA noted that the stock’s valuation is in line with its semiconductor peers at early stages of new product cycles.

Threats for MRVL include: 1) integration risks in recent acquisitions, 2) financial risks related to going to net debt from net cash positions and in achieving expected cost synergies on a timely basis, and 3) cyclical industry risks such as a possible slowdown in legacy hard disk drive and storage assets, 4) competitive risks against bigger rivals such as AVGO, INTC and NVDA.

Dividend-paying Cloud Stocks to Feature Disk Drive Provider

Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets, said it is “tough” to avoid paying too much for cloud stocks.

Instead, buy shares of a company that provides key materials, such as disk drives, for use by cloud companies, Carlson counseled. Companies that provide cloud services need disk drives for their infrastructure, he added.

“A good choice is hard-disk maker Seagate Technology (NASDAQ:STX),” Carlson told me. “In fact, it is the only pure play left among disk drive makers.”

Seagate, of Fremont, California, offers a 2.9% dividend yield and has been manufacturing hard disk drives for 40-plus years. After a 47% rise thus far in 2021, the stock still sells at only 14 times analysts’ consensus earnings estimates for the next 12 months, continued Carlson, who also heads the Retirement Watch investment newsletter.

Money Manager’s Picks Join Dividend-paying Cloud Stocks to Purchase 

The cloud is used widely, and its revenues keep rising by double-digit percentages each year. For investors seeking high-impact investments that reflects future data patterns, consider wireless modems that keep devices tethered to the cloud, said Hilary Kramer, who hosts the nationally aired “Millionaire Maker” radio program and leads the GameChangers and Value Authority advisory services.

Pension fund and Retirement Watch leader Bob Carlson answers questions from Paul Dykewicz before COVID-19 social distancing took effect

Paul Dykewicz conducts a pre-COVID-19 interview with Hilary Kramer, whose premium advisory services include IPO Edge, 2-Day Trader, Turbo Trader and Inner Circle.

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Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com andDividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Check out the Father’s Day special offer!