26 Highest Yielding Technology Growth Stocks
Dividend Yield | Feb 04, 2013 07:44AM ET
We all know that there are great investment opportunities within the technology sector. Think Facebook (FB) or Google (GOOG). Both are great companies and they made early stage investors very rich – mostly investors who were onboard during each company's pre-capital market area.
In general the tech sector is not a great source for income investors because these companies need money to finance growth rather than dividends.
The highest yields from the technology sector come from telecom companies. Those are also usually companies with huge debt and the slowest sector growth. But there are still some higher yielding stocks with mid-term growth prospects.
Twenty-six stocks from the tech sector met these criteria. Most of the results come from the communication equipment industry. There is a higher downside risk to these stocks. But you can still find some attractive stocks, on the list below.
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.
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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.
Here is the full table with some fundamentals (TTM):
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
Disclosure: I am long ACN, QCOM and ORCL. 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.
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