While 2014 is still pretty young, one trend that has been noteworthy is the outperformance of tech stocks in a choppy market. For instance, the tech-heavy Nasdaq composite COMP +0.27% is up over 3% year-to-date vs. just 1% for the broad-based S&P 500 SPX +0.60% . Also, select tech-focused ETFs like the First Trust Dow Jones Internet Index Fund FDN -0.10% and the iShares S&P GSTI Software Index Fund IGV +0.61% fund are up by 5% or so on the year.
If you’re an investor seeking income or stability, stocks like Facebook or Coupons.com are non-starters. Newly minted Internet picks and fast-moving social media players come with significant risk — and most importantly, don’t come with a dividend. So where can investors look if they want to play tech but also want to seek yields of 3% or better? Here are a few ideas: Seagate (STX) Yield: 3.5%, Cisco (CSCO) Yield: 3.5% and Microsoft (MSFT).
Source: Market Watch
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