Investors with a taste for blue-chip stocks like Microsoft have options in terms of how to diversify. You can add companies like Johnson and Johnson, or Disney. Both are solid, established multibillion-dollar businesses. However, those who are seeking stocks that are similar to MSFT in more ways than one will find there's a whole section of the market that consists of high-tech blue-chip and probable future blue-chip investment opportunities. We analyzed the data and narrowed it down to our 2020 top ten stocks to consider if you like Microsoft.
10. Tesla: TSLA
You don't need to look far to see why Tesla is an outstanding choice to add to your portfolio. A glance at the company's performance over time is an upward curve. For those who've somehow managed to miss hearing about TSLA, they create mostly cars and solar panels. Led by visionary Elon Musk, this blue-chip is on it's way up. However, they're down slightly at the moment, so now is the time to buy.
9. IBM: IBM
This famous multinational corporation has been known for technology since before most people used that word in everyday conversation. We think the stock will be headed for a major upswing since IBM just signed a 1.1 billion-dollar deal to overhaul the IT systems of Banco Sabadell. This isn't the first time IBM has made a billion, nor will it be the last. The company has a solid history and a 4.7% dividend, which isn't the highest, but neither is it small.
8. Broadcom Inc: AVGO
With their infrastructure software products and semiconductors, Broadcom serves markets from the wireless to the industrial. AVGO is a company that understands how to diversify within their sphere to the greatest effect, a fact which they've proven time and again. With a dividend just slightly less than IBM, a solid 4.23%, AVGO is higher on our list because the overall stock value is greater by more than 100%.
7. Salesforce: CRM
Customer Relationship Management might not seem like the most obvious direction for a technology-heavy blue-chip stock. However, that lack of insight allowed CRM to open the door and help the digital world interface with customers better on a massive scale. Last week CRM made the announcement at the National Retail Foundation (NRF) Conference in New York that new developer tools are dropping. What it means for companies is more freedom and product friendliness for developers who want to customize the experience. Like many of the moves CRM has made, it only increased the company's value.
6. Intel: INTC
Though it hasn't yet reached the previous high of $73.19 from June of 2000, Intel stock has been fairly steadily climbing back up in value over the last two years. We think it would be wise to buy before it reaches and surpasses that peak again. According to a recent report from SDXcentrals Mark Kapko (https://www.sdxcentral.com/articles/news/intel-showcases-ai-strategy-for-5g-intelligent-edge/2020/01/), INTC is pushing hard to come out on top in the 5G race, or at least a close second to Huawei. Even second is more than enough to increase the company and stock value on its own regardless of whether US-China trade relations go well.
5. Comcast: CMCSA
Given the recent release of Peacock from Comcast, this particular option is one to watch. The field of streaming services keeps growing, and each new player that joins the field dilutes the pool and increases competition for highly desirable programming. Some, like Disney, are creating their own content and buying up other franchises whole, but they can only go so far with that strategy. There's a lot of promise in this venture, but more conservative investors may want to wait until the lineup is more complete before banking on Peacock to increase the overall value of CMCSA.
4. Apple: APPL
As one of the Big Four, we had to put APPL in the top four. Its long-term stock value is a sharp upward curve, and there's little reason to believe the trend will stop anytime soon. There's no such thing as perfect security, but all of the top four are reasonably safe bets, more so than many blue-chip stocks in non-tech industries.
3. Amazon: AMZN
It goes without saying that AMZN is another solid buy from the Big Four. If last year's Christmas sales upsets are any indicator of their rise to (greater) success, then Amazon hasn't stopped growing. India may have snubbed Jeff Bezo's billion-dollar offer, but that's not stopping the shipping and sales giant from expanding, and the stock value along with it. Amazon isn't going anywhere, and smaller companies are having a very tough time fighting back.
2. Alphabet (Google)
A large part of what landed Alphabet in the second place on this list is the stock that's in seventh. According to onmsft.com, GOOGL might be seeking to acquire CRM. A merger between the two would certainly affect Alphabet's fortunes for the better. Regardless of the possible future, Google is a household name for good reason. As a balance to Microsoft, there's no better stock to balance out a tech-based blue-chip portfolio.
1. NVIDIA: NVDA
As a relative newcomer to the blue-chip circle, there are too many investors who overlook NVDA. The company's GPUs and chips for vehicles have performed amazingly well over time. It's with good reason that the Motley Fool and Nasdaq.com are hailing it as a millionaire maker. We suggest buying on the next dip before NVIDIA recovers again.
In terms of risk versus reward, the stock market has no promises, but much potential, as we all know. Investors who put Microsoft in their portfolio know that they're holding on to a stock that is more likely than most to continue to increase in value over time. Like the market, we can make no assurances, but we believe these ten stocks are all solid choices for similar investment potential. While most are proven 'winners' our top spot, NVIDIA is a company we believe will be joining those ranks soon enough.
Written by Bill Vix
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