Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Aaron Levitt May 20, 2020
We’re currently living through one of the worst healthcare crises the modern world has ever known. So, what a novel time for our Best Dividend Stocks List pick in the technology sector to dive into healthcare with a series of new offerings. Already a major winner in the cloud – for both enterprise and consumers – our pick has recently announced moves into the healthcare sector. By using its vast cloud product portfolio, our pick is planning on leveraging its expertise to allow healthcare providers to bring a new standard of care to patients – not only for the COVID-19 pandemic, but for an overall new healthcare reality.
And this move into healthcare couldn’t come at a better time.
Our pick is already a major winner from the shift into cloud computing and virtualization: both sales to consumers and enterprise partners increased by a whopping 39% at our pick last quarter. This helped drive an overall surge in revenues and near-record profits for the firm. Even better was that the COVID-19 pandemic had a minimal effect on these results.
With a major pivot to healthcare, our pick has the potential to keep its stellar profit and cash flow growth going at just the right time when other firms are scrambling to make ends meet – not that our pick needs help on this front. The firm has quickly become a dividend champion with over 15 years’ worth of steady dividend increases and a hefty buyback program.
In the end, our pick has perfectly pivoted from being an old school tech into a modern cloud master. And now, it’s about to conquer the world of healthcare technology, which will only continue to boost shareholder rewards down the line.
To summarize, here are five reasons why you should own this stock:
1. Operating income jumped by nearly 25% in the third quarter of fiscal 2020 with cloud computing leading the way!
2. New forays into the healthcare cloud will provide a huge runway for future growth at just the right time.
3. Smartly using M&A to boost its own operations and add new sources of growth to its cloud business.
4. Has grown its dividend for 15+ years straight with its latest increase being over 10%.
5. Healthy payout ratio of 35% and growing yield of 1.10%.
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