Cheap Stocks to Buy Now: Advanced Semiconductor (ASX)
Market Cap: $8.3 billion
Advanced Semiconductor Engineering (ASX) builds and distributes integrated circuits and other electronics. While that’s not as sexy as other chipmakers that play to mobile, it’s still a good business, considering the general demand for microchips in everything from cars to computers to TVs.
The Taiwan-based company is close to many Asian electronics manufacturers. And regardless of whether those manufacturers crank out something as hot as the iPhone from Apple (AAPL), ASX still will have a strong baseline simply because of how many high-tech devices exist in the world.
Moreover, ASX is not a chip designer, so it doesn’t have the same big margins as the companies who create the next hot chip … but it also doesn’t have the same risk. Advanced Semiconductor’s diverse business makes it a stable player for the long haul, and not as finicky as companies that rely heavily on laptops an desktops. That stability also is reflected in the form of a 3.3% dividend yield.
In a post-PC age, there are assuredly sexier tech plays out there. But ASX is up 33% in the last year and boasts a decent dividend. You’d be hard pressed to find a cheap tech stock that packs the same punch.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.