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

Technology Companies With High Growth And Positive Dividend Payments Researched By “long-term-investments.blogspot.com”. I often hear that technology stocks are high growth investments but they pay low dividends or no dividends. They sit on tons of cash and search for the next big IT revolution. If they don’t do this, they could lose their current competitive advantage and disappear from the market within the next ten years. We have seen this formation process at Nokia (NOK) or Research In Motion (RIM). If you think longer about the requirements and risks of the sector, investors should rewarded by a higher return or discount in the stock price to increase the margin of safety. 

I made a screen of all dividend stocks within the technology sector (from 879 technology companies pay 201 dividends). But who are the stocks with the highest growth at adequate risks? To get an answer, I selected only stocks with a market capitalization over USD 10 billion, a beta ratio of less than one as well as earnings per share growth of more than ten percent yearly. Nine really solid stocks remained. You find the list at the end of this post.


Here are my favorite stocks:
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Accenture (NYSE:ACN) has a market capitalization of $53.75 billion. The company employs 257,000 people, generates revenue of $29.78 billion and has a net income of $2.82 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.47 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 $3.84. 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 17.67, the P/S ratio is 1.83 and the P/B ratio is finally 11.09. The dividend yield amounts to 2.39 percent and the beta ratio has a value of 0.86.


Long-Term Stock History Chart Of Accenture (Click to enlarge)
Long-Term Dividends History of Accenture (ACN) (Click to enlarge)
Long-Term Dividend Yield History of Accenture (NYSE: ACN) (Click to enlarge)

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $102.93 billion. The company employs 21,200 people, generates revenue of $14.96 billion and has a net income of $4.56 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.04 billion. The EBITDA margin is 40.35 percent (the operating margin is 33.26 percent and the net profit margin 30.45 percent).

Financial Analysis: The total debt represents 3.20 percent of the company’s assets and the total debt in relation to the equity amounts to 4.32 percent. Due to the financial situation, a return on equity of 19.13 percent was realized. Twelve trailing months earnings per share reached a value of $2.97. Last fiscal year, the company paid $0.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.37, the P/S ratio is 6.75 and the P/B ratio is finally 3.70. The dividend yield amounts to 1.69 percent and the beta ratio has a value of 0.99.


Long-Term Stock History Chart Of QUALCOMM (Click to enlarge)
Long-Term Dividends History of QUALCOMM (QCOM) (Click to enlarge)
Long-Term Dividend Yield History of QUALCOMM (NASDAQ: QCOM) (Click to enlarge)

ARM Holdings (NASDAQ:ARMH) has a market capitalization of $15.67 billion. The company employs 2,368 people, generates revenue of $788.06 million and has a net income of $180.49 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $258.84 million. The EBITDA margin is 32.84 percent (the operating margin is 30.29 percent and the net profit margin 22.90 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 11.52 percent was realized. Twelve trailing months earnings per share reached a value of $0.52. Last fiscal year, the company paid $0.17 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 65.08, the P/S ratio is 19.65 and the P/B ratio is finally 8.79. The dividend yield amounts to 0.54 percent and the beta ratio has a value of 0.94.


Long-Term Stock History Chart Of ARM Holdings (Click to enlarge)
Long-Term Dividends History of ARM Holdings (ARMH) (Click to enlarge)
Long-Term Dividend Yield History of ARM Holdings (NASDAQ: ARMH) (Click to enlarge)


Take a closer look at the full table of the best technology growth stocks with good dividends. The average P/E ratio amounts to 30.26 and forward P/E ratio is 20.35. The dividend yield has a value of 1.32 percent. Price to book ratio is 4.87 and price to sales ratio 5.42. The operating margin amounts to 22.71 percent. The average stock has a debt to equity ratio of 0.41.

Here is the full table with some fundamentals (TTM):

Solid Dividend Stocks From The Technology Sector (Click to enlarge)

These nine technology stocks are the best growth investments. Which will have the biggest stock gains? To get the answer, click here!

Related stock ticker symbols:
ACN, CHA, QCOM, ATVI, AMT, INTU, CHU, ARMH, ROP

Selected Articles:
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* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.