"However, for investors who seek greater predictability and a better night's sleep, I think the mature dividend-paying growth companies are more than worth sticking with. As the Magnificent Seven companies show us, size and maturity do not take away from a firm's ability to grow and dominate, especially in the age of artificial intelligence (AI), which could favor the giants with deep enough pockets to invest in infrastructure, organic innovations, talent, and even bets in private AI companies that show promise."
"When it comes to mature growth titans, it's tough to look past Microsoft ( NASDAQ:MSFT), which has a growing 0.71%-yielding dividend and a ton of AI-driven growth catalysts that could come into effect in the early part of next year. Indeed, shares of MSFT have been quite hot, but not overheated, with shares up a modest 23% year to date, just 5% more than the 18% gain enjoyed by the Mag Seven-heavy Nasdaq 100."
Some investors prefer hyper-growth companies with rocketing sales and no profits, seeking future market capture through technology. Other investors favor mature growth titans that maintain impressive earnings growth rates and return capital to shareholders through dividend increases and share buybacks. Mature dividend-paying companies can still be disruptive growers and may provide greater predictability and lower portfolio volatility for risk-averse investors. The largest, most mature firms often possess resources to invest in AI infrastructure, organic innovation, talent, and strategic private-company bets, enhancing long-term competitive advantage. Microsoft exemplifies such a firm, offering a 0.71% dividend yield and AI-driven growth catalysts while delivering solid year-to-date share gains.
Read at 24/7 Wall St.
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