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To create the list below we started by looking for stocks in the technology sector with a dividend of at least 1%, but not more than 5%. This allowed us to focus on companies with a strong credit profile.

This might be a good time to look at technology companies, which have stronger balance sheets in 2013 versus in 2009 making the sector defensive, contrary to its high-beta historical profile.

We further analyzed our list of companies for strong profitability by performing DuPont analysis. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components. If the ROE is unsatisfactory, the DuPont analysis helps target the part of the business that is underperforming. Learn more about the equation here.

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the idea that the names are profitable.

Our final list consisted of 4 stocks.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these dividend stocks are attractive? Use this as a starting point for your own analysis.

1. EPIQ Systems, Inc. (NASDAQ:EPIQ): Provides integrated technology solutions for the legal profession primarily in the United States.

  • Market cap at $504.32M, most recent closing price at $14.04.
  • MRQ net profit margin at 4.14% vs. 2.63% y/y. MRQ sales/assets at 0.146 vs. 0.109 y/y. MRQ assets/equity at 1.907 vs. 2.039 y/y.
  • Dividend yield at 2.6%.
  • The company has reported strong earnings growth over the last year, with EPS growing by 86.25%, higher than competitors like Wipro Ltd. (EPS growth over the last year at 4.99%) and Xerox Corp. (EPS growth over the last year at -0.23%).

2. Fidelity National Information Services, Inc. (NYSE:FIS): Provides banking and payments technology solutions worldwide.

  • Market cap at $11.75B, most recent closing price at $39.90.
  • MRQ net profit margin at 9.11% vs. 8.01% y/y. MRQ sales/assets at 0.111 vs. 0.105 y/y. MRQ assets/equity at 2.04 vs. 2.133 y/y.
  • Dividend yield at 2.2%.
  • Fidelity has a low short float compared to industry averages, suggesting perhaps that short sellers see limited downside in the stock. The company's short float stands at 0.59%, much lower than Moody's Corp. (short float at 5.67%, representing 4.06 days of trading volume) and Fiserv, Inc. (short float at 1.89%, representing 3.44 days of trading volume).

3. NVIDIA Corporation (NASDAQ:NVDA): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations.

  • Market cap at $7.47B, most recent closing price at $12.13.
  • MRQ net profit margin at 15.72% vs. 12.17% y/y. MRQ sales/assets at 0.173 vs. 0.172 y/y. MRQ assets/equity at 1.328 vs. 1.339 y/y.
  • Dividend yield at 2.5%.
  • Based on conventional valuation ratios, NVIDIA Corporation looks cheap relative to competitors. The stock's PEG ratio stands at 1.3, while its Price/Cash ratio stands at 2.02. Even on a Price to Free Cash Flow basis the stock looks cheap, with a ratio of 11.77.

4. QUALCOMM Incorporated (NASDAQ:QCOM): Engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services.

  • Market cap at $113.35B, most recent closing price at $65.97.
  • MRQ net profit margin at 31.67% vs. 29.93% y/y. MRQ sales/assets at 0.134 vs. 0.124 y/y. MRQ assets/equity at 1.269 vs. 1.32 y/y.
  • Dividend yield at 1.6%
    • QUALCOMM is also one of the more profitable names in its industry: TTM gross margin at 67.81% vs. industry average at 59.95%. TTM operating margin at 31.12% vs. industry average at 19.35%. TTM pretax margin at 35.04% vs. industry average at 20.%.

*Profitability data sourced from Finviz, all other data sourced from Finviz.

Source: 4 Dividend Technology Stocks With Strong Sources Of Profitability