1 Positive Tech Trend Investors Shouldn't Ignore

Investors went gaga over Cisco's big dividend raise last week, sending its shares soaring on the hopes that tech firms were going further into dividends. However, as senior technology analyst Eric Bleeker notes in the following video, focusing on Cisco's dividend alone could be a big mistake for tech investors. 

That's because Cisco also announced that U.S. state and local government spending was up 17% from last year. Government spending accounts for 20% or more of total revenue for many IT firms and has been a lacking segment of revenue growth for several years, so a rebound in government spending could be a pretty sizable driver investors aren't watching. Not only that, but Cisco also expressed hope that enterprises are loosening purse strings after cutting back spending earlier this year amid fears that Europe would weaken the world economy. 

That's not to say the IT spending environment's recovery is assured, but Eric says not to ignore Cisco's early notice of a rebound. To see Eric's full thoughts and a couple of stocks investors should take note of if IT spending rebounds, watch the following video.

The amount of data we store every year is growing by a mind-boggling 60% annually! That's a huge tech trend investors simply can't ignore. To makes sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of this company transforming the IT industry, click here -- it's free.

Austin Smith has no positions in the stocks mentioned above. Eric Bleeker owns shares of Cisco Systems and EMC. The Motley Fool owns shares of EMC and F5 Networks. Motley Fool newsletter services recommend F5 Networks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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