Cisco Systems, Inc. (CSCO), Apple Inc. (AAPL), Western Digital Corp. (WDC): A Tech Income Portfolio

Although a late entry to this segment has worried investors, I believe that the company has plenty of time left to construct its SSD capabilities. Western Digital Corp. (NASDAQ:WDC) started to build out its SSD segment with the purchase of SiliconSystems in 2009 and further solidified its position in 2011, through the Hitachi GST acquisition. The recent decision to buy STEC, Inc. (NASDAQ:STEC) for $340 million in cash certainly looks like a step in the right direction. Furthermore, its cloud-based business will also help drive the demand for new drives.

Offering strong margins and returns while yielding 1.43% of the current stock price in the form of dividends, these shares look like a buy. Although long-term prospects are not that good, they are not bad either. Valued at 8 times its earnings, Western Digital Corp. (NASDAQ:WDC)’s shares are a bargain and upside potential is plenty. Consider adding this stock to your long-term portfolio; wait for the upside and cash on dividends, meanwhile.

Bottom line

Cisco Systems, Inc. (NASDAQ:CSCO), Apple Inc. (NASDAQ:AAPL) and Western Digital Corp. (NASDAQ:WDC) are three income stocks that have outperformed the market over the last few years and are expected to continue to deliver growth going forward, while paying out dividends in the process. All trade near or below industry average valuations while offering strong business models and plenty of room for expansion, especially in emerging economies; these are three companies that you should consider adding to your long-term portfolio.

The article A Tech Income Portfolio originally appeared on Fool.com.

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