National Instruments, Xerox, and Western Union are technology companies which share a common feature – they’re also great dividend stocks. The tech sector is known to be highly volatile and cyclical since firms face high competition and constant disruption. However, those that build successful economic moats are exceptionally profitable and some pay strong dividends as a result. Here are my top dividend stocks in the tech industry that could be valuable additions to your current holdings.
National Instruments Corporation (NASDAQ:NATI)
NATI has a sizeable dividend yield of 2.14% and their current payout ratio is 192.07% . In the case of NATI, they have increased their dividend per share from US$0.29 to US$0.92 so in the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. The company also looks promising for it’s future growth, with analysts expecting an impressive earnings per share growth rate of over 100% over the next three years. Dig deeper into National Instruments here.
Xerox Corporation (NYSE:XRX)
XRX has a good-sized dividend yield of 3.64% and is paying out 164.19% of profits as dividends . Over the past 10 years, XRX has increased its dividends from US$0.68 to US$1.00. The company has been a dependable payer too, not missing a payment in this 10 year period. Xerox is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years. Interested in Xerox? Find out more here.
The Western Union Company (NYSE:WU)
WU has a nice dividend yield of 3.66% and a reasonably sustainable dividend payout ratio , with analysts expecting this ratio in three years to be 39.39%. The company’s dividends per share have risen from US$0.04 to US$0.76 over the last 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. If analysts are right, WU shareholders can expect strong returns over the next few years. They are estimating the company’s three year return on equity to be 48.68%. More detail on Western Union here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.