GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

My 3 Favorite Technology Growth Stocks with Highest Dividend Yield

We all know that there are great investment opportunities within the technology sector. Think at Facebook or Google. Both are great companies and they made early stage investors very rich – mostly investors of the pre-capital market area.

Sure the field is not a great source for income investors because the companies need money to finance growth and perspectives and possibilities are really huge.

Not all companies have the ability manage growth in a successful way. They try hard but it doesn’t work. Think at Blackberry or Microsoft. Other companies with a solid market position have changed their statement to the financial market: They like to pay good dividends because they sit on big cash mountains and find no risk-adjusted way to grow. Cisco Systems or Microsoft are two stocks with strong growing dividends.

The biggest yields from the technology sector come from telecom companies. Those are also stocks with huge debt amounts and the slowest sector growth. But there are still some good yielding stocks with mid-term growth perspectives. Today, I would like to show you the best yielding higher capitalized stocks with double-digit expected earnings per share growth.

Twenty-six stocks from the tech sector fulfilled these criteria. Most of the results come from the communication equipment industry. This is a hard playing industry were you have a higher downside risk as stock trader. But you can find some attractive stocks on the list below.

Here are my favorite stocks:

Accenture (ACN) has a market capitalization of $50.46 billion. The company employs 257,000 people, generates revenue of $29.777 billion and has a net income of $2.824 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.465 billion. The EBITDA margin is 14.99 percent (the operating margin is 13.00 percent and the net profit margin 9.49 percent).

Financial Analysis: The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 63.64 percent was realized. Twelve trailing months earnings per share reached a value of $3.93. Last fiscal year, the company paid $1.35 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.76, the P/S ratio is 1.72 and the P/B ratio is finally 12.05. The dividend yield amounts to 2.20 percent and the beta ratio has a value of 0.88.

Wipro Limited (WIT) has a market capitalization of $23.38 billion. The company employs 108,000 people, generates revenue of $6.997 billion and has a net income of $1.053 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.331 billion. The EBITDA margin is 19.03 percent (the operating margin is 17.21 percent and the net profit margin 15.05 percent).

Financial Analysis: The total debt represents 13.52 percent of the company’s assets and the total debt in relation to the equity amounts to 20.66 percent. Due to the financial situation, a return on equity of 21.23 percent was realized. Twelve trailing months earnings per share reached a value of $0.49. Last fiscal year, the company paid $0.11 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.52, the P/S ratio is 2.69 and the P/B ratio is finally 4.35. The dividend yield amounts to 1.14 percent and the beta ratio has a value of 1.73.

Oracle Corporation (ORCL) has a market capitalization of $171.41 billion. The company employs 117,229 people, generates revenue of $37.121 billion and has a net income of $9.981 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.622 billion. The EBITDA margin is 44.78 percent (the operating margin is 36.92 percent and the net profit margin 26.89 percent).

Financial Analysis: The total debt represents 21.03 percent of the company’s assets and the total debt in relation to the equity amounts to 37.71 percent. Due to the financial situation, a return on equity of 23.92 percent was realized. Twelve trailing months earnings per share reached a value of $2.12. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.08, the P/S ratio is 4.62 and the P/B ratio is finally 4.06. The dividend yield amounts to 0.66 percent and the beta ratio has a value of 1.08.

Take a closer look at the full list of the best yielding technology growth stocks. The average P/E ratio amounts to 21.85 and forward P/E ratio is 15.61. The dividend yield has a value of 2.52 percent. Price to book ratio is 3.85 and price to sales ratio 3.51. The operating margin amounts to 20.40 percent and the beta ratio is 1.16. Stocks from the list have an average debt to equity ratio of 0.44.

Related stock ticker symbols:

VIP, NTT, INTC, MBT, GLW, AAPL, TSM, ACN, TEL, ERIC, CHA, MSI, QCOM, TSU, BRCM, AMX, ALTR, INTU, INFY, CHU, SAP, ASML, WIT, ORCL, APH, ARMH

Selected Articles:

· 20 Best Recommended Technology Stocks

· My Best Technology Stock Picks For 2013

· 9 Solid Dividend Stocks From The Technology Sector | High Growth With Great Dividends

· 524% Return With The Best Technology Growth Portfolio – Cloud Computing

If you would like to receive more news and regular dividend updates, you should subscribe to my free E-Mail list. Alternatively, you can follow me onFacebookor Twitter.Stocks from the technology sector with strong growth and high dividends originally published at long-term-investments.blogspot.com.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 3.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide