Three Dow Jones Tech Stocks That Are Massive Long-Term Bets for Investors
August 10 2021 - 6:55AM
Finscreener.org
The Dow Jones Industrial Average or DJIA Index is one of the
most popular indexes in the world. It has served as an indicator of
the health of the U.S. economy and sentiment surrounding Wall
Street for more than a century.
In case you have dry powder available to invest in stocks right
now, you can consider these extremely popular Dow Jones stocks
today.
Salesforce.com
One of the
top-performing stocks on Wall Street, Salesforce.com (NYSE:
CRM)
remains a top pick for growth investors. Salesforce.com is a market
leader in the customer relationship management space and its suite
of products is used by enterprises to manage digital marketing
campaigns, analyze service issues as well as for customer
analytics, among others. IDC in fact forecasts Salesforce.com to
account for 20% of global CRM revenue.
Salesforce.com has increased top-line at an annual rate of 29%
in the past decade and continues to expand revenue organically.
Alternatively, the company has also focused on big-ticket
acquisitions including Tableau and Slack to gain traction in other
markets.
The company’s CEO, Mark Benioff expects Salesforce sales to
touch $50 billion by fiscal 2026, up from $21.3 billion in fiscal
2021, indicating annual growth rates of 20% in the next four
years.
Visa Inc.
A fintech giant, valued at a market cap of $523 billion, Visa
(NYSE: V) has been a
massive wealth creator for investors. In the last 10 years, Visa
stock is up 1,210%, easily surpassing the S&P 500 gains of
380% in this period.
Visa is also part of Warren Buffett’s portfolio as the company
manages to outperform analyst forecasts consistently. Its sales
have risen from $18.35 billion in fiscal 2017 to $21.85 billion in
fiscal 2020 (ended in September). Wall Street now forecasts sales
to rise by 8.2% to $23.6 billion in 2021 and by 19.5% to $28.24
billion in 2022. Comparatively, its earnings per share might grow
at an annual rate of 18.8% in the next five years.
Visa is a payment processor and one of the most recognized
brands in the world. The company has issued 3.6 billion credit and
debit cards in more than 200 countries. In the last four quarters,
Visa has facilitated over $9 trillion in total payments.
It continues to issue additional cards as well as its merchant
base, both of which are key drivers of revenue growth. In the last
two years, Visa’s merchant base has increased by 34%. Visa is well
placed to benefit from the reopening of global economies and the
company has forecast its total addressable market at a whopping
$200 trillion.
Verizon
While Visa and Salesforce are part of a rapidly growing market,
Verizon (NYSE: VZ)
operates in a mature sector. However, this allows the company to
generate steady and predictable cash flows and pay
a tasty dividend to investors.
Verizon is also part of Warren Buffett’s portfolio and Berkshire
Hathaway (NYSE: BRK-A)
increased its stake in this telecom giant by 8.3% in 2021. The
upcoming transition towards 5G remains a key driver of revenue
growth for Verizon that also pays investors a dividend yield of
4.5%.
The company is eying growth in the NaaS or
network-as-a-service vertical too. This subscription service
will enable the integration of multiple applications that include
virtual reality, the internet of things, and artificial
intelligence. Verizon has spent $45 billion in the first six months
of 2021 to benefit from the NaaS opportunity which has increased
total debt to $152 billion.
In the first two quarters of 2021, Verizon sales were up 7% year
over year at $66.6 billion while its net income grew 24% to $11.3
billion. Verizon has managed to increase its dividends each year
since 2007 and this trend is likely to continue given the company’s
cash flow and earnings expansion.
Berkshire Hathaway (NYSE:BRK.A)
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