Motley Fool: Chip company’s slump is a buying opportunity

  • 📰 dallasnews
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 71%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

Thanks in large part to the pandemic, the world is experiencing a shortage of semiconductor chips, which are used in everything from smartphones to cars....

An employee handles a silicon wafer during the chips fabrication process at the Institute of Microelectronics of Barcelona in Bellaterra near Barcelona.Thanks in large part to the pandemic, the world is experiencing a shortage of semiconductor chips, which are used in everything from smartphones to cars. Demand for chips is high, but shares of Singapore-based Kulicke & Soffa Industries are down — recently by nearly 22% from their 52-week high — presenting an opportunity for investors.

With a recent price-to-earnings ratio in the single digits, well below its five-year average of 37, Kulicke & Soffa’s stock is appealingly priced. Its dividend, which was hiked by 21% last year, recently yielded 1.1%. And management is also rewarding shareholders by buying back $800 million worth of shares. Long-term investors should take a closer look.I’ve heard it’s good to invest regularly in stocks. But some stocks I’m thinking of buying are down by 35% to 65% now.

Focus on funds with the word “income” in their names. They’re likely to invest primarily in stocks that pay dividends and/or bonds that pay interest. Note that other kinds of funds can offer income, too, if they hold certain stocks or bonds. We recommend stock index funds for many investors, and they generate income, too.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 18. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fact or Fiction: Companies roll out fake products for April Fools?Many companies use April Fools Day to roll out some amusing fake products.
Source: 10News - 🏆 732. / 50 Read more »