3 Of My Best Technology Stock Picks For 2013

VIV: Telefonica Brasil S.A. ADS logo
VIV
Telefonica Brasil S.A. ADS

Submitted by Dividend Yield as part of our contributors program.

Every time, I am searching for the best investment opportunities at the market. The year goes by and I have to consider ideas for the next year. Today, I like to focus on technology, a field that is very underweighted in my private portfolio. I am looking for growth stocks with cheap price ratios and high-quality margins. That’s why I screened the technology sector by stocks with a forward P/E ratio of less than 15, a sales growth over the past five years of more than 10 percent as well as an operating margin above 10 percent. In order to exclude low capitalized stocks, the market capitalization should be over USD 10 billion.

Exactly thirteen stocks fulfilled these criteria of which nine technology stocks pay dividends – Eight have a buy or better recommendation.


Here are the 3 best yielding technology dividend stocks:

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Telefonica Brasil (VIV) has a market capitalization of $24.46 billion. The company employs 21,542 people, generates revenue of $13.743 billion and has a net income of $2.058 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.898 billion. The EBITDA margin is 35.65 percent (the operating margin is 19.90 percent and the net profit margin 14.98 percent).

Financial Analysis: The total debt represents 9.51 percent of the company’s assets and the total debt in relation to the equity amounts to 14.37 percent. Due to the financial situation, a return on equity of 15.84 percent was realized. Twelve trailing months earnings per share reached a value of $1.23. Last fiscal year, the company paid $2.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.66, the P/S ratio is 1.67 and the P/B ratio is finally 1.16. The dividend yield amounts to 8.46 percent and the beta ratio has a value of 0.59.

CenturyLink (CTL) has a market capitalization of $24.27 billion. The company employs 46,500 people, generates revenue of $15.351 billion and has a net income of $573.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.029 billion. The EBITDA margin is 39.27 percent (the operating margin is 13.05 percent and the net profit margin 3.73 percent).

Financial Analysis: The total debt represents 38.90 percent of the company’s assets and the total debt in relation to the equity amounts to 104.84 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $1.05. Last fiscal year, the company paid $2.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.05, the P/S ratio is 1.60 and the P/B ratio is finally 1.17. The dividend yield amounts to 7.38 percent and the beta ratio has a value of 0.69.

Mobile TeleSystems (MBT) has a market capitalization of $17.42 billion. The company employs 58,052 people, generates revenue of $12.318 billion and has a net income of $1.567 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.144 billion. The EBITDA margin is 41.76 percent (the operating margin is 22.80 percent and the net profit margin 12.73 percent).

Financial Analysis: The total debt represents 56.89 percent of the company’s assets and the total debt in relation to the equity amounts to 250.29 percent. Due to the financial situation, a return on equity of 43.71 percent was realized. Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, the company paid $1.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.42, the P/S ratio is 1.44 and the P/B ratio is finally 5.09. The dividend yield amounts to 5.02 percent and the beta ratio has a value of 1.55.

Take a closer look at the full list of the best technology dividend stock picks for 2013. The average P/E ratio amounts to 19.60 and forward P/E ratio is 16.84. The dividend yield has a value of 2.75 percent. Price to book ratio is 3.46 and price to sales ratio 2.06. The operating margin amounts to 15.16 percent. The average stock has a debt to equity ratio of 0.92.

 

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