The technology sector is generally characterised as full of innovation, competition and growth. It is also known to be highly cyclical and volatile since companies tend to find it difficult to create sustainable competitive advantage. However, those that build successful economic moats are exceptionally profitable and some pay strong dividends as a result. Today I will share with you my list of high-dividend tech stocks you should consider for your portfolio.
National Instruments Corporation (NASDAQ:NATI)
NATI has a nice dividend yield of 2.24% and the company has a payout ratio of 192.07% . NATI’s DPS have risen to US$0.92 from US$0.29 over a 10 year period. They have been dependable too, not missing a single payment in this time. National Instruments 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. Continue research on National Instruments here.
Xerox Corporation (NYSE:XRX)
XRX has a wholesome dividend yield of 3.52% and is currently distributing 164.19% of profits to shareholders . XRX’s dividends have increased in the last 10 years, with DPS increasing 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. Analyst estimates for Xerox’s future earnings are certainly promising, predicting a triple digit earnings growth over the next three years. Continue research on Xerox here.
The Western Union Company (NYSE:WU)
WU has a good dividend yield of 3.88% and a reasonably sustainable dividend payout ratio , with analysts expecting the payout in three years to be 39.41%. 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. Analysts believe that WU will be a strong performer for the next few years, with its ROE in three years estimated to be 48.68%. Dig deeper into 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.