MTS Systems, National CineMedia, and AVX are technology companies which share a common feature – they’re also great dividend stocks. The tech sector is known to be highly cyclical and volatile since companies tend to find it difficult to create sustainable competitive advantage. Though, companies that are able to build a strong moat are incredibly profitable and some payout high dividends as a result. Here are my top dividend stocks in the tech industry that could be valuable additions to your current holdings.
MTS Systems Corporation (NASDAQ:MTSC)
MTSC has a nice dividend yield of 2.25% and the company has a payout ratio of 91.09% . MTSC’s dividends have increased in the last 10 years, with DPS increasing from $0.6 to $1.2. They have been dependable too, not missing a single payment in this time. Analysts are expecting an impressive triple digit earnings growth over the next three years.
National CineMedia, Inc. (NASDAQ:NCMI)
NCMI has an alluring dividend yield of 13.31% with a high payout ratio . In the case of NCMI, they have increased their dividend per share from $0.6 to $0.88 so in the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. National CineMedia’s earnings per share growth of 19.11% outpaced the us media industry’s 1.78% average growth rate over the last year.
AVX Corporation (NYSE:AVX)
AVX has a nice dividend yield of 2.52% and the company has a payout ratio of 55.07% , with the expected payout in three years being 64.76%. AVX’s DPS have risen to $0.46 from $0.16 over a 10 year period. Much to the delight of shareholders, the company has not missed a payment during this time. AVX’s earnings per share growth of 43.65% over the past 12 months outpaced the us electronic industry’s average growth rate of 22.40%.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.