3 of My Best Technology Stock Picks for 2013

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Dec 06, 2012
Every time I am searching for the best investment opportunities at the market, the year goes by and I have to consider ideas for the next year. Today, I would like to focus on technology, a field that is very underweighted in my private portfolio. I am looking for growth stocks with cheap price ratios and high-quality margins. That’s why I screened the technology sector by stocks with a forward P/E ratio of less than 15, a sales growth over the past five years of more than 10 percent as well as an operating margin above 10 percent. In order to exclude low-capitalized stocks, the market capitalization should be over USD10 billion.

Exactly 13 stocks fulfilled these criteria of which 9 technology stocks pay dividends – 8 have a buy or better recommendation.

Here are the 3 best yielding technology dividend stocks:

Telefonica Brasil (VIV) has a market capitalization of $24.46 billion. The company employs 21,542 people, generates revenue of $13.743 billion and has a net income of $2.058 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.898 billion. The EBITDA margin is 35.65 percent (the operating margin is 19.90 percent and the net profit margin 14.98 percent).

Financial Analysis: The total debt represents 9.51 percent of the company’s assets and the total debt in relation to the equity amounts to 14.37 percent. Due to the financial situation, a return on equity of 15.84 percent was realized. Twelve trailing months earnings per share reached a value of $1.23. Last fiscal year, the company paid $2.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.66, the P/S ratio is 1.67 and the P/B ratio is finally 1.16. The dividend yield amounts to 8.46 percent and the beta ratio has a value of 0.59.

CenturyLink (CTL) has a market capitalization of $24.27 billion. The company employs 46,500 people, generates revenue of $15.351 billion and has a net income of $573.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.029 billion. The EBITDA margin is 39.27 percent (the operating margin is 13.05 percent and the net profit margin 3.73 percent).

Financial Analysis: The total debt represents 38.90 percent of the company’s assets and the total debt in relation to the equity amounts to 104.84 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $1.05. Last fiscal year, the company paid $2.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.05, the P/S ratio is 1.60 and the P/B ratio is finally 1.17. The dividend yield amounts to 7.38 percent and the beta ratio has a value of 0.69.

Mobile TeleSystems (MBT) has a market capitalization of $17.42 billion. The company employs 58,052 people, generates revenue of $12.318 billion and has a net income of $1.567 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.144 billion. The EBITDA margin is 41.76 percent (the operating margin is 22.80 percent and the net profit margin 12.73 percent).

Financial Analysis: The total debt represents 56.89 percent of the company’s assets and the total debt in relation to the equity amounts to 250.29 percent. Due to the financial situation, a return on equity of 43.71 percent was realized. Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, the company paid $1.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.42, the P/S ratio is 1.44 and the P/B ratio is finally 5.09. The dividend yield amounts to 5.02 percent and the beta ratio has a value of 1.55.

Take a closer look at the full list of the best technology dividend stock picks for 2013. The average P/E ratio amounts to 19.60 and forward P/E ratio is 16.84. The dividend yield has a value of 2.75 percent. Price to book ratio is 3.46 and price to sales ratio 2.06. The operating margin amounts to 15.16 percent. The average stock has a debt to equity ratio of 0.92.

Related stock ticker symbols:

CTL, MBT, VIV, VIP, CHL, INFY, QCOM, AMX, ORCL, EMC, AAPL, BIDU, GOOG

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