In this video, Motley Fool analyst Jim Mueller discusses three reasons to buy Seagate (NASDAQ:STX) today.

First, the company has decided on a goal to drop down the number of shares outstanding from about 400 million to 250 million by 2014. This would mean that the shares owned by the shareholders would be worth a lot more when the share count falls.

Seagate also pays a growing dividend and the yield currently sits around 5.5% which is quite significant.

Finally, there is a long-term growth trend for hard drives and companies with cloud-based services, including Amazon (NASDAQ:AMZN), need to buy hard drives for storage. There is stability in this market, along with other growth areas, so Seagate will be around for quite a long time.

Andrew Tonner has no positions in the stocks mentioned above. Jim Mueller owns shares of Amazon.com and Western Digital and has the following options: long JAN 2014 $20 calls on Facebook. The Motley Fool owns shares of Amazon.com, Facebook, Fusion-io, and Western Digital and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Amazon.com and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.