14 Highly Profitable Technology Stocks with a Yield Over 3%

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Mar 06, 2012
Technology Dividend Stocks with High Return on Investments and Big Operating Margins Researched by Dividend Yield - Stock, Capital, Investment. Technology stocks are characterized by high growth, high margins and low dividends. They normally pay low dividends because they want to finance new technologies with high growth potential. Many of the big IT companies serve billions of cash but they don’t know where to invest it.


I screened the technology sector by the most profitable stocks (stocks with an operating margin and return on investment over 20 percent) with a dividend yield over 3 percent. Exactly fourteen companies fulfilled these criteria. Most of the results come from the semiconductor or communication industry. Four stocks have a double-digit yield and five are recommended to buy or have a strong buy rating.


Here are my favorite stocks:


1. China Mobile (CHL, Financial) has a market capitalization of $209.88 billion. The company employs 170,019 people, generates revenues of $77,045.25 million and has a net income of $19,057.48 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $37,638.30 million. Because of these figures, the EBITDA margin is 48.85 percent (operating margin 31.07 percent and the net profit margin finally 24.74 percent).


The total debt representing 1.16 percent of the company’s assets and the total debt in relation to the equity amounts to 1.74 percent. Due to the financial situation, a return on equity of 22.10 percent was realized. Twelve trailing months earnings per share reached a value of $4.82. Last fiscal year, the company paid $2.06 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.86, P/S ratio 2.75 and P/B ratio 2.31. Dividend Yield: 3.87 percent. The beta ratio is 0.50.


2. Intel Corporation (INTC) has a market capitalization of $132.59 billion. The company employs 100,100 people, generates revenues of $53,999.00 million and has a net income of $12,942.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,409.00 million. Because of these figures, the EBITDA margin is 43.35 percent (operating margin 32.12 percent and the net profit margin finally 23.97 percent).


The total debt representing 10.31 percent of the company’s assets and the total debt in relation to the equity amounts to 15.97 percent. Due to the financial situation, a return on equity of 27.15 percent was realized. Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, the company paid $0.78 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 11.07, P/S ratio 2.49 and P/B ratio 2.93. Dividend Yield: 3.12 percent. The beta ratio is 1.09.


3. Linear Technology (LLTC) has a market capitalization of $7.37 billion. The company employs 4,505 people, generates revenues of $1,483.96 million and has a net income of $580.78 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $813.25 million. Because of these figures, the EBITDA margin is 54.80 percent (operating margin 51.42 percent and the net profit margin finally 39.14 percent).


The total debt representing 48.17 percent of the company’s assets and the total debt in relation to the equity amounts to 155.40 percent. Due to the financial situation, a return on equity of 212.98 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.94 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 15.15, P/S ratio 5.06 and P/B ratio 14.77. Dividend Yield: 3.05 percent. The beta ratio is 1.08.


Take a closer look at the full table of high profitable technology stocks with best margins, returns and dividends. The average price to earnings ratio (P/E ratio) amounts to 11.64 and forward P/E ratio is 10.47. The dividend yield has a value of 7.77 percent. Price to book ratio is 5.99 and price to sales ratio 2.53. The operating margin amounts to 30.18 percent. Finally, the return on equity has a fantastic margin of 66.39 percent and the return on investment follows with a value of 30.06 percent.


Related stock ticker symbols:

CEL, PTNR, MNDO, SFUN, TEO, USMO, SLP, TLK, CHL, TCCO, TSM, INTC, LLTC, CPSI


Selected Articles:

· The Best Yielding Technology Stocks With Biggest EPS Forecasts

· 14 Technology Dividend Stocks With Buy Or Better Rating

· The Highest Dividends From The Technology Sector

· 16 Technology Dividend Stocks With High Growth