These 2 Tech Giants Are Up More Than 400% And Continue To Print Money For Dividend Growth Investors

Many high-quality dividend growth stocks are growing faster than the average stock and vastly outperforming the market. And I can think of two tech giants as prime examples. Today, I want to tell you about two tech dividend growth stocks that continue to print money for dividend growth investors.

The first tech dividend growth stock that is printing money for dividend growth investors is Apple Inc. (AAPL). Apple is a multinational tech company with a market cap of $2.4 trillion. Check this out. Despite its massive size, it's still growing at an incredible rate. They just reported third quarter results on July 27. And get this. Revenue grew by 36.4% YOY. They did over $80 billion in revenue. In a single quarter. That's more revenue than a lot of S&P 500 companies bring in over an entire year. EPS of $1.30 beat consensus expectations by a full $0.29 and grew by 100% YOY. A $2.4 trillion company growing sales and profit at this rate? It's almost unheard of. And you know what growing profit means? A growing dividend.

Indeed, Apple has increased its dividend for nine consecutive years. While the starting yield of 0.6% is small, it's those dividend raises that slowly add up year after year as the business grows and the stock rises in value. The five-year dividend growth rate is 9.4%. And with the dividend payout ratio at only 17.2%, I suspect we're in for plenty more large dividend increases in the years to come. Keep in mind, Apple has almost $100 billion in cash. That gives further cushion to the dividend payout. Every time I bring up Apple in a video, I hear that it's overvalued. Well, those investors complaining about valuation are missing out. I called Apple a "must-own stock" for serious dividend growth investors in March, when the stock was around $135/share

A lot of viewers complained about valuation and low yield. Yet the stock is now at $145/share. This is a stock that's up more than 450% over the last five years! And with the ubiquity of their products and services, their incredible growth rate, the printing of money, and their near-$20 billion per quarter stock repurchase program, the stock is likely headed a lot higher, despite the lofty P/E ratio of 28.4.

The other tech giant that continues to print money for dividend growth investors is Microsoft Corporation (MSFT). A trillion here. A trillion there. Soon enough, you're working with big money. Seriously, though, the big size might lull you into a false sense of complacency, thinking they can't grow anymore. But you'd be wrong. Very wrong. From Windows to Xbox to Office to LinkedIn to Azure, Microsoft is firing on all cylinders. Actually, they need an extra cylinder. Because Microsoft is operating at a level that puts them in extremely rare company. This is no sleeping giant. Their growth is off the charts. This dividend is only going in one direction - up. You know what else is going up? The stock. Microsoft stock has shot up more than 400% over the last five years. And of course it has, with this kind of growth. Yet here we are, with the stock bumping up against $290/share. And you already know which direction this thing is headed in - just look at a five-year or ten-year chart. If you haven't already jumped on this money train, I would urge you to seriously reconsider that. Choo-choo. All aboard.

Video Length: 00:08:40

 

Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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