November 23, 2024

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3 Stocks to Buy Now

3 Stocks to Buy Now

As markets peak, it is tempting, and perhaps wise, to hold off on buying anything for a while. But of course, not every listed company is trading at an all-time high.

Among the large number of tips that can be found on the Internet, we have selected for you two worthwhile tips and a real estate fund with good profits, according to Zax Worth buying.

TSMC

Coatue Management recently sold nearly three million shares of Nvidia stock and bought the Taiwan Semiconductor company in return. TSMC is rapidly expanding its high-tech chip packaging capacity, which is essential for high-bandwidth memory chips for AI data centers.

While events (such as the massive Taiwan earthquake in April) and geopolitical tensions with China could disrupt the still-fragile semiconductor supply chain, TSMC has a significant advantage over its competitors given the rise of the data center economy.

Micron

Micron Technology is a leading supplier of DRAM and NAND memory used primarily in personal computers and data centers. The stock has performed well this year due to demand for powerful memory modules for AI servers.

The memory and storage markets are notorious for their cyclical fluctuations in demand and prices. Last year, falling memory prices were the main reason for an 8% decline in semiconductor sales. But AI is helping Micron’s business out of the doldrums, sending the company’s revenue up 58% in the most recent quarter compared to a year ago. More growth is expected, as there are now shortages again. So prices and profits could rise.

There’s an oversupply lurking again, but the consumer PC market is also recovering. AI could mean record sales and earnings for Micron: The current consensus estimate is for earnings per share of $1.02 this fiscal year and rising to more than $9 next year.

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Real estate income

Realty Income is the largest publicly traded net-lease real estate investment trust (REIT). It is also one of the most reliable dividend enhancers in history. The REIT pays a monthly dividend that has increased 126 times since its IPO in 1994. At the current price, Realty Income shares offer a dividend yield of 5.9%.

Realty Income has a diversified portfolio: Its three largest clients — Dollar General, Walgreens and Dollar Tree — are responsible for less than 10% of annual rent. Realty also has retail clients, mostly supermarket and hardware store operators who are not sensitive to changing consumer behavior.

Decades of growing cash flows have earned Realty Income an A3 credit rating from Moody’s. This means it can borrow at lower interest rates than almost all of its competitors. This may not be the fastest growing dividend on the market, but it may be the most reliable.

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