Up to date on September twenty second, 2023 by Bob Ciura
Spreadsheet knowledge up to date day by day
The know-how business is among the most fun areas of the inventory market, recognized for its speedy progress and propensity to create speedy and life-changing wealth for early traders.
Till lately, the know-how sector was not recognized for being a supply of high-quality dividend funding concepts. That is now not the case.
At this time, a few of the most interesting dividend shares come from the tech sector.
With that in thoughts, we’ve compiled a listing of all 200+ know-how shares full with necessary investing metrics, which you’ll be able to entry beneath:
The holdings of the know-how shares record have been derived from the next main exchange-traded funds:
Invesco QQQ ETF (QQQ)
Expertise Choose Sector SPDR ETF (XLK)
Invesco S&P SmallCap Data Expertise ETF (PSCT)
Maintain studying this text to study extra about the advantages of investing in dividend-paying know-how shares.
Along with offering a full spreadsheet of tech shares and how one can use the spreadsheet, we give our prime 10-ranked tech shares right now by way of 5-year anticipated annual returns.
Desk Of Contents
The next desk of contents permits you to immediately soar to any part:
How To Use The Expertise Shares Record To Discover Dividend Funding Concepts
Having an Excel doc containing the names, tickers, and monetary metrics for all dividend-paying know-how shares will be extraordinarily highly effective.
The doc turns into considerably extra highly effective if the consumer has a working information of Microsoft Excel.
With that in thoughts, this part will present you how one can implement two actionable investing screens to the know-how shares record. The primary display screen that we’ll implement is for shares with dividend yields above 3%.
Display screen 1: Excessive Dividend Yield Expertise Shares
Step 1: Obtain the know-how shares record on the hyperlink above.
Step 2: Click on on the filter icon on the prime of the dividend yield column, as proven beneath.
Step 3: Change the filter setting to “Larger Than” and enter 0.03 into the sphere beside it, as proven beneath.
The remaining shares on this spreadsheet are dividend-paying know-how shares with dividend yields above 3%, which offer a basket of securities that ought to enchantment to retirees and different income-oriented traders.
The subsequent part will present you how one can concurrently display screen for shares with price-to-earnings ratios beneath 20 and market capitalizations above $10 billion.
Display screen 2: Low Value-to-Earnings Ratios, Massive Market Capitalizations
Step 1: Obtain the know-how shares record on the hyperlink above.
Step 2: Click on on the filter icon on the prime of the price-to-earnings ratio column, as proven beneath.
Step 3: Change the filter setting to “Much less Than” and enter 20 into the sphere beside it, as proven beneath.
Step 4: Exit out of the filter window (by clicking the exit button, not by clicking the Clear Filter button). Then, click on on the filter icon on the prime of the market capitalization button, as proven beneath.
Step 5: Change the filter setting to “Larger Than” and enter 10000 into the sphere beside it, as proven beneath. Notice that since market capitalization is measured in thousands and thousands of {dollars} on this spreadsheet, inputting “$10,000 million” is equal to screening for shares with market capitalizations above $10 billion.
The remaining shares within the Excel spreadsheet are dividend-paying know-how shares with price-to-earnings ratios beneath 20 and market capitalizations above $10 billion. The scale and affordable valuation of those companies make this a helpful display screen for value-conscious, risk-averse traders.
You now have an understanding of how one can use the know-how shares record to search out investments with sure monetary traits. The rest of this text will talk about the relative deserves of investing within the know-how sector.
Why Make investments In The Expertise Sector?
The know-how business is understood for having a few of the best-performing shares over brief intervals of time. Certainly, it’s exhausting to overstate how a lot wealth was created for the early traders in corporations like Microsoft (MSFT) or Apple (AAPL).
As well as, the know-how sector is very diversified. It contains every little thing from social media corporations to semiconductor shares. The know-how sector itself just isn’t a monolith; there are numerous sorts of companies throughout the sector.
Sadly, the know-how business can also be recognized for inflicting one of the vital dramatic inventory market bubbles on report. The 2000-2001 dot-com bubble destroyed billions of {dollars} of market worth as a result of know-how shares have been buying and selling at such irrationally excessive valuations.
Supply: YCharts
This notable bear market may lead some traders to keep away from the know-how sector solely.
Happily, right now’s know-how sector is tremendously completely different from its predecessor within the early 2000s. Whereas know-how shares have been beforehand valued primarily based on web page views or different self-importance metrics, this college of thought has modified considerably.
At this time’s know-how shares are valued primarily based on the identical yardsticks as different companies: earnings, free money circulation, and, to a lesser extent, belongings.
Furthermore, cautious safety evaluation permits traders to search out undervalued know-how shares and earnings, simply as with every different business.
Traders may also keep away from tech shares due to a perceived lack of ability to grasp how they earn money. Whereas some traders ignore know-how shares due to their harder-to-understand enterprise fashions, it’s necessary to notice that not all know-how shares have enterprise operations which might be shrouded in complexity.
For example, Apple has a quite simple enterprise mannequin. The corporate manufactures and sells iPhones, Apple computer systems, and wearable gadgets.
Furthermore, one might argue that Apple’s biggest energy just isn’t its know-how, however its model – much like many non-technology corporations just like the Coca-Cola Firm (KO), Procter & Gamble (PG), and Colgate-Palmolive (CL).
Importantly, there are alternatives much like Apple all through the sector – not all know-how shares have aggressive benefits which might be primarily based on microchip capability or cloud computing velocity.
The final purpose why know-how shares can play an necessary function in your funding portfolio is that they’ve the potential to be very robust dividend shares.
Traditionally, the know-how sector was devoid of any interesting dividend investments as a result of know-how companies reinvested all cash to drive speedy natural progress.
That is now not the case, not less than not usually. Many know-how companies now pay steadily rising dividends 12 months in and 12 months out.
The earnings of those massive, steady know-how corporations are solely rising. And, many know-how companies have pretty low payout ratios.
These components lead us to imagine that the know-how sector will proceed to supply robust dividend progress funding alternatives for the foreseeable future.
The Prime 10 Tech Shares At this time
With all that mentioned, the next 10 shares signify our highest-ranked tech shares within the Positive Evaluation Analysis Database, by way of 5-year anticipated annual returns.
Rankings are listed so as of anticipated whole annual returns, so as from lowest to highest.
Tech Dividend Inventory #10: Monolithic Energy Techniques (MPWR)
5-Yr Annual Anticipated Returns: 16.9%
Monolithic Energy Techniques is a number one semiconductor firm that designs, develops, and markets high-performance energy options. The corporate makes use of its deep system-level and purposes experience to develop extremely built-in monolithic programs utilized in computing and storage, automotive, industrial, communications, and shopper purposes industries.
Monolithic Energy generates round $1.2 billion in annual revenues. The corporate operates a diversified enterprise mannequin.
Supply: Investor Presentation
On July thirty first, 2023, Monolithic Energy reported its Q2 outcomes for the interval ending June thirtieth, 2023. For the quarter, revenues declined by 2.2% quarter-over-quarter to $441.13 million. The decline in revenues was as a result of decrease communications gross sales, offset by increased Industrial, Storage and Computing, and Shopper and Enterprise Knowledge gross sales.
Communications revenues of $49.3 million have been down 27.4% from Q1-2023, primarily reflecting decrease infrastructure gross sales. Nevertheless, Storage and Computing revenues grew by 3.9% sequentially. The Industrial and Shopper segments additionally noticed increased revenues, which elevated by 4.8% and a couple of.9%, respectively.
Lastly, Enterprise Knowledge revenues grew by 1.7% in comparison with the earlier quarter. Because of decrease gross sales, adjusted earnings-per-share got here in at $2.82, in comparison with $3.00 in Q1-2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on MPWR (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #9: HP, Inc. (HPQ)
5-Yr Annual Anticipated Returns: 8.9%
HP Inc. has centered its enterprise actions round two predominant segments: its product portfolio of printers, and its vary of so-called private programs, which incorporates computer systems and cellular gadgets.
HP reported its third quarter (fiscal 2023) outcomes on August 29. The corporate reported income of $13.2 billion for the quarter, which missed the analyst consensus estimate, and which was down 10% from the earlier 12 months’s quarter.
This was barely higher than the income decline that HP skilled throughout the earlier quarter, whereas the weak year-over 12 months efficiency will be defined by an total financial downturn.
Supply: Investor Presentation
Non-GAAP earnings-per-share totaled $0.86 throughout the third quarter, which was consistent with the analyst consensus estimate. HP Inc. noticed its working margin decline barely over the past 12 months.
The corporate presently forecasts earnings per-share in a spread of $0.85 to $0.97 for the fourth quarter, which might imply an enchancment versus the newest quarter on the midpoint of the steerage vary.
Click on right here to obtain our most up-to-date Positive Evaluation report on HPQ (preview of web page 1 of three proven beneath):
Tech Inventory #8: TE Connectivity (TEL)
5-Yr Annual Anticipated Returns: 9.0%
TE Connectivity manufactures and sells connectivity and sensor options worldwide. The corporate operates via 3 segments: Transportation Options, Industrial Options, and Communications Options, which made up 57%, 28%, and 16% of gross sales, respectively, for the total fiscal 12 months 2022.
The Transportation Options phase supplies sensor and connectivity elements for the automotive and business transportation business. The Industrial Options phase supplies elements for industrial sectors just like the aerospace, protection, oil & fuel, medical, and vitality markets. Lastly, the Communications Options phase provides elements for the information and gadgets and home equipment markets.
Supply: Investor Presentation
On July twenty sixth, 2023, TE Connectivity reported third quarter 2023 outcomes for the interval ending June thirtieth, 2023. The corporate earned $1.77 in adjusted earnings-per-share for the quarter, which beat analysts’ estimates by 10 cents. Income declined by 2.4% year-over-year to $3.998 billion, lacking analysts’ consensus estimates by $50 million.
Click on right here to obtain our most up-to-date Positive Evaluation report on TEL (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #7: NetApp Inc. (NTAP)
5-Yr Annual Anticipated Returns: 9.8%
NetApp calls itself the “knowledge authority for hybrid cloud” offering providers to simplify and empower an organization’s use of its knowledge, in addition to speed up their digital transformation. The $16 billion market cap firm generated over $6.3 billion in gross sales final fiscal 12 months and earned $1.23 billion in adjusted web earnings.
On August twenty third, 2023, NetApp reported Q1 fiscal 12 months 2024 outcomes for the interval ending July twenty eighth, 2023. For the quarter, the corporate generated web revenues of $1.43 billion, down 10% year-over-year. Adjusted web earnings equaled $249 million or $1.15 per share in comparison with $269 million or $1.20 per share within the first quarter of FY 2023.
NetApp’s Public Cloud annualized income run fee grew 6% year-over-year to $619 million, and the All-flash array annualized web income run fee decreased 7% year-over-year to $2.8 billion. Within the first quarter, the corporate returned $506 million to shareholders in share repurchases and dividends.
Moreover, NetApp supplied Q2 and FY 2024 steerage. For the upcoming quarter the corporate expects $1.35 to $1.45 in adjusted earnings-per share. For the 12 months, NetApp expects adjusted earnings-per-share of $5.65 to $5.85.
Click on right here to obtain our most up-to-date Positive Evaluation report on NTAP (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #6: Cisco Techniques (CSCO)
5-Yr Annual Anticipated Returns: 9.9%
Cisco Techniques is the worldwide chief in excessive efficiency laptop networking programs. Its routers and switches enable networks around the globe to attach to one another via the web. Cisco additionally provides knowledge heart, cloud, and safety merchandise. The corporate went public on February sixteenth, 1990. At this time, Cisco employs greater than 79,000 folks and generates $57 billion in annual revenues.
On February fifteenth, 2023, Cisco introduced a 2.6% dividend enhance within the quarterly cost to $0.39. On August sixteenth, 2023, Cisco introduced earnings outcomes for the fourth quarter and full fiscal 12 months. For the quarter, income grew 16% to $15.2 billion, which was $150 million above estimates.
Adjusted earnings-per-share of $1.14 in contrast favorably to adjusted earnings-per-share of $0.83 within the prior 12 months and was $0.08 greater than anticipated. For the fiscal 12 months, income grew 11% to $57 billion whereas adjusted earnings-per-share of $3.89 in comparison with $3.36 within the prior 12 months.
Cisco supplied an outlook for fiscal 12 months 2023 as properly, with the corporate anticipating income of $57 to $58.2 billion.Adjusted earnings-per-share is projected in a spread of $4.01 to $4.08.
Click on right here to obtain our most up-to-date Positive Evaluation report on CSCO (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #5: Skyworks Options (SWKS)
5-Yr Annual Anticipated Returns: 10.1%
Skyworks Options is a semiconductor firm that designs, develops, and markets proprietary semiconductor merchandise worldwide. Its merchandise embody antenna tuners, amplifiers, converters, modulators, receivers, and switches. Skyworks’ merchandise are utilized in various industries, together with automotive, linked house, industrial, medical, smartphones, and protection.
On August seventh, 2023, Skyworks reported third-quarter outcomes for Fiscal Yr (FY)2023. On a non-GAAP foundation, the working earnings surged to $326.6 million, with a corresponding non-GAAP diluted EPS of $1.73. Along with its spectacular income figures, Skyworks Options demonstrated its monetary energy via substantial quarterly working money circulation of $305.7 million. Notably, the corporate achieved a report year-to-date working money circulation of $1.491 billion.
Click on right here to obtain our most up-to-date Positive Evaluation report on SWKS (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #4: Juniper Networks (JNPR)
5-Yr Annual Anticipated Returns: 11.8%
Juniper Networks designs, develops, and sells switching, routing, safety, software program services for the networking business. JNPR sells its options in additional than 150 international locations. Its prospects embody the world’s greatest wired and wi-fi carriers, content material and web service suppliers, cloud and knowledge heart suppliers, cable and satellite tv for pc operators, main banks and monetary establishments, authorities companies, healthcare and academic establishments, and vitality and utility corporations.
Juniper Networks reported second quarter 2023 outcomes on July twenty seventh, 2023. Internet revenues for the quarter have been $1.43 billion, up 13% year-over-year. GAAP web earnings for the quarter was $0.07 per share, an 80% decline over $0.35 in the identical prior 12 months interval. Non-GAAP web earnings was $0.58 per share, a 38% enhance over $0.42 in second quarter of 2022. The corporate repurchased $271 million of widespread inventory for retirement in Q2 2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on JNPR (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #3: Corning Inc. (GLW)
5-Yr Annual Anticipated Returns: 12.0%
Corning operates in 5 segments: Show Applied sciences, Optical Communications, Specialty Supplies, Environmental Applied sciences, and Life Sciences.
On July twenty fifth, 2023, Corning reported second quarter 2023 outcomes for the interval ending June thirtieth, 2023. For the quarter, Corning reported $3.5 billion in core gross sales, down 7% from one 12 months in the past. Optical Communications – the biggest income phase – noticed gross sales lower by 19% year-over-year. Show Applied sciences and Environmental Applied sciences revenues rose 28% and 6%, respectively.
In the meantime, Life Sciences, Specialty Supplies, and Hemlock and Rising Progress Companies declined -26%, -13%, and -10%, respectively. Core web earnings equaled $388 million or $0.45 per share, in comparison with $350 million or $0.41 per share in Q2 2022.
The corporate noticed its core working margin rise 200 foundation factors sequentially to 17.5%, on account of pricing and productivity-improvement actions.
Click on right here to obtain our most up-to-date Positive Evaluation report on GLW (preview of web page 1 of three proven beneath):
Tech Inventory #2: Microchip Applied sciences (MCHP)
5-Yr Annual Anticipated Returns: 12.0%
Microchip Expertise develops, manufactures, and sells sensible, linked and safe embedded management options used for all kinds of purposes. These embody disruptive progress tendencies similar to 5G, synthetic intelligence, Web of Issues (IoT), and autonomous driving, amongst others, in key finish markets similar to automotive, aerospace and protection, communications.
On August third, 2023, Microchip Expertise raised its dividend by 7% to a quarterly fee of $0.41. On a year-over-yearbasis, the dividend grew by 36.2%. Microchip Expertise additionally reported its Q1-2024 outcomes for the quarter ending June thirtieth, 2023.
For the quarter, web gross sales have been a report $2.29 billion, up 16.6% from the comparable interval final 12 months and a couple of.5% increased sequentially. Larger revenues have been once more powered by distinctive execution on delivering Microchip’s backlog and robust underlying demand, in addition to enhancements within the provide chain. On a non-GAAP foundation, EPS was $1.64 versus $1.36 in Q1-2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on Microchip Applied sciences (preview of web page 1 of three proven beneath):
Tech Dividend Inventory #1: Qualcomm Inc. (QCOM)
5-Yr Annual Anticipated Returns: 13.8%
Qualcomm develops and sells built-in circuits to be used in voice and knowledge communications. The chip maker receives royalty funds for its patents utilized in gadgets which might be on 3G and 4G networks.
On April twelfth, 2023, Qualcomm elevated its quarterly dividend 6.7% to $0.80, marking the corporate’s twenty first consecutive 12 months of dividend progress.
Supply: Investor Presentation
On August 2nd, 2023, Qualcomm introduced outcomes for the third quarter of fiscal 12 months 2023 for the interval ending June twenty fifth, 2023. For the quarter, income fell almost 23% to $8.44 billion and missed estimates by $70 million. Adjusted earnings-per-share of $1.87 in contrast unfavorably to $2.96 within the earlier 12 months, however was $0.06 greater than anticipated.
Click on right here to obtain our most up-to-date Positive Evaluation report on QCOM (preview of web page 1 of three proven beneath):
Last Ideas
The know-how sector has turn into an intriguing place to search for high-quality dividend funding alternatives.
With that mentioned, it’s not the solely place to search for funding concepts.
For those who’re keen to enterprise exterior of the know-how sector, the next databases comprise a few of the most high-quality dividend shares round:
For those who’re in search of different sector-specific dividend shares, the next Positive Dividend databases can be helpful:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
