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19 High Beta Technology Dividend Stocks At Reasonable Prices Compared To Growth

Cheap technology dividend stocks with highest beta ratios and good growth originally published at long-term-investments.blogspot.com. High beta stocks are risky but they offer also big opportunities for risk seeking investors. The technology sector is one of the investment fields with a huge base of risk-adjusted business models.  Not every investment is a “win or fail” strategy.

Today I would like to continue my monthly screen serial about high beta stocks from several sectors. Technology dividend stocks are in my focus now. Because of the huge amount of high beta dividend paying technology stocks, I implemented three additional criteria in my screen: A very high market capitalization, an expected five year earnings per share growth as well as a low forward price-to-earnings ratio.

Growth should be over 10 percent for the next half decade and the P/E should below 15. In my view, this ratio represents a very good price for the future growth opportunity but the business model could be much riskier because of the high beta ratio. The betas of the 19 results are between 1.3 and 4. Some stocks like Telecom Italia, Orange or Broadcom have a really bad mid-term performance. Others like TE Connectivity from Swiss or Eaton increased during the same period by over 55 percent or more.

Here are the highest yielding high beta technology dividend stocks:
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Intel (NASDAQ:INTC) has a market capitalization of $115.54 billion. The company employs 106,000 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. Intel’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of Intel’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized by Intel. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, Intel paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.55, the P/S ratio is 2.17 and the P/B ratio is finally 2.24. The dividend yield amounts to 3.88 percent and the beta ratio has a value of 1.01.

Long-Term Stock Price Chart Of Intel (INTC)
Long-Term Dividend Payment History of Intel (INTC)
Long-Term Dividend Yield History of Intel (INTC)

Orange (NYSE:ORAN) has a market capitalization of $25.97 billion. The company employs 167,835 people, generates revenue of $57.791 billion and has a net income of $1.466 billion. Orange’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.433 billion. The EBITDA margin is 28.44 percent (the operating margin is 9.34 percent and the net profit margin 2.54 percent).

Financial Analysis: The total debt represents 44.24 percent of Orange’s assets and the total debt in relation to the equity amounts to 163.77 percent. Due to the financial situation, a return on equity of 3.16 percent was realized by Orange. Twelve trailing months earnings per share reached a value of $0.06. Last fiscal year, Orange paid $1.83 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 158.22, the P/S ratio is 0.45 and the P/B ratio is finally 0.80. The dividend yield amounts to 6.71 percent and the beta ratio has a value of 0.85.

Long-Term Stock Price Chart Of Orange (ORAN)
Long-Term Dividend Payment History of Orange (ORAN)
Long-Term Dividend Yield History of Orange (ORAN)

CA Technologies (NASDAQ:CA) has a market capitalization of $13.77 billion. The company employs 13,600 people, generates revenue of $4.643 billion and has a net income of $955.00 million. CA Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.924 billion. The EBITDA margin is 41.44 percent (the operating margin is 29.33 percent and the net profit margin 20.57 percent).

Financial Analysis: The total debt represents 10.92 percent of CA Technologies’s assets and the total debt in relation to the equity amounts to 23.67 percent. Due to the financial situation, a return on equity of 17.41 percent was realized by CA Technologies. Twelve trailing months earnings per share reached a value of $2.30. Last fiscal year, CA paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.21, the P/S ratio is 2.98 and the P/B ratio is finally 2.50. The dividend yield amounts to 3.29 percent and the beta ratio has a value of 1.04.

Long-Term Stock Price Chart Of CA (CA)
Long-Term Dividend Payment History of CA (CA)
Long-Term Dividend Yield History of CA (CA)

Telecom Italia (NYSE:TI) has a market capitalization of $12.63 billion. The company employs 82,941 people, generates revenue of $39.578 billion and has a net income of $-1,698.63 million. Telecom Italia’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.304 billion. The EBITDA margin is 38.67 percent (the operating margin is 6.46 percent and the net profit margin -4.29 percent).

Financial Analysis: The total debt represents 48.10 percent of Telecom Italia’s assets and the total debt in relation to the equity amounts to 192.50 percent. Due to the financial situation, a return on equity of -7.73 percent was realized by Telecom Italia. Twelve trailing months earnings per share reached a value of $-1.26. Last fiscal year, Telecom Italia paid $0.27 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.30 and the P/B ratio is finally 0.49. The dividend yield amounts to 3.97 percent and the beta ratio has a value of 1.12.

Long-Term Stock Price Chart Of Telecom Italia (TI)
Long-Term Dividend Payment History of Telecom Italia (TI)
Long-Term Dividend Yield History of Telecom Italia (TI)

Take a closer look at the full list of cheap high beta technology dividend stocks with big growth forecasts. The average P/E ratio amounts to 19.16 and forward P/E ratio is 11.71. The dividend yield has a value of 2.23 percent. Price to book ratio is 2.95 and price to sales ratio 11.71. The operating margin amounts to 20.15 percent and the beta ratio is 1.15. Stocks from the list have an average debt to equity ratio of 0.56.

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

Cheap High Beta Technology Dividend Stocks (Click to enlarge)


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Related Stock Ticker Symbols:
INTC, ORAN, CA, TI, GLW, ETN, TSM, MSI, QCOM, IBM, TEL, FIS, CHA, BRCM, SNDK, EMC, ORCL, NTAP, SAP

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*I am long INTC, CA, QCOM, ORCL, IBM. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.