5 Tech Dividend Stocks With Impressive Dividend Trends By Kapitall. If you’re looking for sources of dividend income, there are several considerations to keep in mind, particularly if you are concerned about maintaining that yield. Dividend yields above 7% and payout ratios above 35% may be unsustainably large. Also, cash flow trends should be positive enough to indicate that the company can keep funding their dividend.
We ran a screen on tech stocks paying dividend yields between 2-7% and payout ratios below 35% for those showing positive cash trends. Using levered free cash flow, or the cash flow available after paying interest on outstanding debt, we searched for those companies with high levered free cash flow relative to market cap. Not only does that indicate dividend sustainability, it also indicates a potentially undervalued opportunity.
Here are the results:
1. Technical Communications Corp. (TCCO)
Dividend yield at 4.86%
2. Computer Sciences Corporation (CSC)
Dividend yield at 2.16%
3. Applied Materials Inc. (AMAT)
Dividend yield at 2.47%
4. Telular Corp. (WRLS)
Dividend yield at 6.38%
5. Harris Corp. (HRS)
Dividend yield at 2.33%
Source: Seeking Alpha
Related Stock Ticker:
TCCO, CSC, AMAT, WRLS, HRS
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