Retirees: Should You Invest in Tech Stocks?

Retirees are missing out on serious opportunities by ignoring tech stocks, so here are four to give you stable income for life!

| More on:
Senior Man Sitting On Sofa At Home With Pet Labrador Dog

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

Motley Fool investors who are in or near retirement tend to not be interested in much risk. So, when retirees look at tech stocks, many end up turning their nose up. And with that, they also turn their nose up at some pretty great opportunities.

Tech stocks are here to stay, and while there are a lot of new and exciting options, there are stable ones as well. So, if you’re a retiree looking for some solid options to consider, these are four great ones to get you started.

Constellation Software

Constellation Software (TSX:CSU) is a software company that narrows in on acquiring other software businesses. This model has worked wonders for the company in the last few decades. Yes, decades. This is hard to find among strong tech stocks, but Constellation has been around for some time. In that time, it’s seen returns of 14,721% since 1995!

And it’s been a stable option as well. Through market crashes, dot-com bubbles — you name it — Constellation has lasted. Shares are now at all-time highs, but its acquisition strategy is sound. You can now latch onto a compound annual growth rate (CAGR) of 43% for the last decade! While shares aren’t cheap, the return will be worth the investment.

Open Text

A similar stock but with a cheaper price tag is Open Text (TSX:OTEX)(NASDAQ:OTEX). It too focused on an acquisition strategy but has since been making partnerships with major tech companies offering cybersecurity for data in the cloud. Cybsecurity is another area of massive growth amongst tech stocks, but Open Text has the advantage.

Open Text has been growing too for decades, up 2,500% since its inception in 1991. It’s also raised its dividend for the eighth time recently since 2013! While it’s small, it’s something you won’t find with most tech stocks. Motley Fool investors can latch onto a CAGR of 17.5% from the last decade and see similarly stable gains in the years to come — even more so perhaps given the growth from cybersecurity.

Converge Technology

If you haven’t picked up on it already, retirees looking for stable tech stocks should look for those that grow through acquisitions. That’s why you can do well with Converge Technology Solutions (TSX:CTS) as well. The company offers data storage solutions and has been buying up companies in the process. While it’s only been around since 2016, it’s on the growth path, up about 1,200% since 2016.

In the last year alone, shares have climbed an incredible 647% as of writing. But don’t confuse growth with volatility. The company has a stable revenue stream and business model that should continue seeing cash coming in as tech stocks continue to grow. While it’s likely to slow eventually, retirees can look forward to some massive short-term gains at a cheap share price.

Dye & Durham

Finally, if you want a super-stable company, Dye & Durham (TSX:DND) is an excellent choice. The software company specifically narrowed in on software for necessary businesses like law firms and government organizations. These will continue paying out subscription revenue, even during economic downturns. We saw this recently, as the company came on the market during the market downturn and surged. In the last year alone, it’s up 215%.

Sales continue to climb, and that will continue as Dye & Durham also takes on its acquisition growth model. It recently made two major acquisitions in the last month and even more before that! So, this is one of the best tech stocks to buy up today for Motley Fool investors seeking long-term revenue growth on the ground floor.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software. The Motley Fool recommends OPEN TEXT CORP and Open Text.

More on Tech Stocks

A worker uses a double monitor computer screen in an office.
Tech Stocks

Why Shopify Stock Sold Off Last Week

Shopify (TSX:SHOP) sold off heavily last week. A bad earnings release may have been the culprit.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

2 Phenomenal Growth Stocks Down 30-60% That Could Rally in the Next Bull Market

Is it time to buy growth stocks? The worst of the interest rate hike and inflation is over, and now…

Read more »

stock market
Tech Stocks

2 Best Tech Stocks to Buy Before the Next Bull Market

Tech stocks such as Roku and Nuvei can help long-term investors generate outsized gains in 2023 and beyond.

Read more »

Wireless technology
Tech Stocks

Tucows Stock Trades Near its 6-Year Low: Is it a Buy?  

Tucows stock fell 63% in the tech stock sell-off and has failed to show any recovery. Is this domain and…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Is Converge Stock a Buy?

A relatively new tech stock could soar higher with the pause in rate hikes, although a resumption of the cycle…

Read more »

online shopping
Tech Stocks

Up by 25%: Is Shopify Stock Finally a Buy in 2023?

The strong rebound in the TSX’s top tech stock remains uncertain. Investors will have to wait before it delivers stellar…

Read more »

Businessman holding AI cloud
Tech Stocks

2 TSX Tech Stocks Innovating Hard in AI

Shopify (TSX:SHOP) stock and another intriguing Canadian gem make good use of AI technologies.

Read more »

worry concern
Tech Stocks

Shopify Stock: Incredible Bargain or Deceptive Trap?

Shopify has quickly shifted from a market darling to something else. Is it a safe buy or risqué bet?

Read more »