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Monday, January 28, 2008

* Tech Stocks in a Dividend Portfolio?!

This week I am going to move things around some and defer the Stock Analysis to Tuesday and use today's post as a lead in.

Thomas Wolfe noted that "You can never go home again". I have always interpreted that as you can go and visit, but things will never really be the same. For me this has certainly rang true. As noted in my article 5 Lessons Learned About Investing, I used to live in an aggressive growth stock neighborhood. Over the last several months, I have contacted several of my old investing pals like MSFT, INTC , CSCO, et. al. to see what they were up to. Like me, they have all matured, grayed, balded and put on some extra pounds. However, my biggest surprise was some of them are actually really getting into dividends. Hmmm...

In a recent Motley Fool Article Get Your Dividends From ... Tech?, Susan Byrne, the founder, chairman, and chief investment officer of Westwood Holdings Group, said tech stocks "always had great balance sheets, and they generate tons of cash. Now they're paying dividends, they have very low payout ratios on their free cash flow, and they're starting to grow."

Could a tech stock actually be a good dividend investment? Tune in tomorrow, we are going to run one of my old tech stock buddies through the stock analysis ringer to determine if we squeeze out a good dividend investment.

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