Gradually, then suddenly. That’s what it will probably feel like when blockchain technology disrupts multiple industries. All at once, many consumers will realize what the big deal of blockchain is all about. So now is the time to look for disruptive blockchain stocks for your portfolio.
Many investors understand blockchain as the technology that underpins cryptocurrency. However, it’s much more than that. The implications of blockchain will permeate multiple industries, such as supply chain management, healthcare, and cybersecurity.
And blockchain doesn’t have the same baggage that cryptocurrency carries. So the technology will continue to advance even as regulation comes to the cryptocurrency industry.
Unfortunately, many of the game-changing blockchain companies are still of the startup variety. But that doesn’t mean you can’t find cutting-edge blockchain stocks.
In this current market environment, those companies may represent safer options for investing in blockchain. Here are three disruptive blockchain stocks to consider for your portfolio.
Block (NYSE:SQ) is already a disruptive company. Its Square Payments platform allowed many small businesses to move their business into the digital age.
The company’s Cash App platform was one of the first peer-to-peer payment systems that changed the way many consumers, particularly in the coveted millennial and Gen-Z demographics, think about the role of traditional financial institutions.
That included being one of the early adopters of letting users buy and exchange Bitcoin.
But Block is also involved in blockchain development applications through its Spiral business unit (formerly known as Square Crypto) which “builds and funds free, open-source projects that advance the use of Bitcoin as a tool for economic empowerment” and TBD which promises to provide easy access to Bitcoin and blockchain technologies with no third party.
Analysts have a bullish outlook on SQ stock. But their outlook may assume the economy is likely to return to growth mode. That’s a big “if”, but SQ is one for the watch list.
Accenture (NYSE:ACN) makes this list of cutting-edge blockchain stocks that will disrupt many industries because that extends what it already does.
The company’s blockchain services help its customers understand and apply blockchain technology to help their businesses. In 2022, Everest Group and HFS Research recognized Accenture as a leader in Enterprise Blockchain Services.
ACN stock is an expensive stock trading at 28x earnings as of this writing. But it has a sound track record of growth. The stock price is up over 80% in the last five years.
And it’s the only stock on this list of disruptive blockchains stocks that pays a dividend. The 1.60% yield isn’t particularly impressive.
But income-oriented investors will note that the stock has an annual payout of $4.60 per share and a sustainable 41% payout ratio. Plus, the company has raised its dividend in each of the last 18 years.
Palantir (NYSE:PLTR) is not a pure play blockchain company. In fact, a more apt description for Palantir would be that it’s a blockchain-adjacent stock. But I included it on this list of disruptive blockchain stocks because of the role it will play in the digital transformation that’s underway.
Specifically, the government is already using Palantir to help track complex digital assets. Palantir can use its platform to leverage the data from blockchain applications with its own expertise in artificial intelligence.
And the company will certainly use its Foundry platform to serve its customers in the private sector as well which could have ramifications for industries like financial technology (fintech) and healthcare just to name two industries that the company could disrupt.
Keep in mind that Palantir is one of the most controversial stocks to own. It’s considered one of the most underrated stocks and one of the most over-hyped stocks. And to be fair, it just recently posted its first profitable quarter on a non-GAAP basis. But trading for under $10 a share, PLTR stock may be one for risk-tolerant investors
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.