My favored technology plays for 2013 are primarily in the semiconductor and software names. Semiconductors have maintained poor performance in 2012, dragged down by slow growth in Asia and Europe. Within semiconductors, Xilinx (XLNX) and Broadcom (BRCM) are my favored companies. Xilinx is my top selection based upon its leading industry position, strong free cash flow generation, and 15% annualized dividend growth. Here are my complete nine key criteria for any potential stock selection:
Key Selection Criteria
- A market capitalization over $10 billion.
- A leadership position within a growing industry.
- A dominant, or large, market share within its product mix.
- A strong position internationally, especially in emerging markets.
- A strong balance sheet and investment