3 High-Yielding Technology Stocks That Have Raised Payouts By At Least 4% A Year For The Last 5 Years

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Includes: BCE, GRMN, RCI
by: Arie Goren

When a company has a long-term track record of consistent and rising dividend payments, it is a clear indicator that the company's financial position is good.

I have searched for profitable technology companies that pay very rich dividends and that have raised their payouts at a significant rate for the last five years.

I have elaborated a screening method which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research. All the data for this article were taken from Yahoo Finance and finviz.com. The screen's formula requires all stocks to comply with all following criteria:

  1. The forward dividend yield is greater than 4.2%.
  2. The payout ratio is less than 70%.
  3. The annual rate of dividend growth over the past five years is greater than 4%.
  4. Trailing P/E is less than 14.
  5. Forward P/E is less than 16.
  6. Average annual earnings growth estimates for the next five years is greater than 3%.

After running this screen on July 13, 2013, I discovered the following three stocks:

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BCE, Inc. (NYSE:BCE)

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada.

BCE Inc. has a low trailing P/E of 13.22 and a low forward P/E of 14.05. The average annual earnings growth estimates for the next five years is at 4.50%. The forward annual dividend yield is very high at 5.43%, and the payout ratio is at 67%. The annual rate of dividend growth over the past five years was at 4.30%.

BCE will report its latest quarterly financial results in July. BCE is expected to post a profit of $0.77 a share, a 23% decline from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.

The low multiples, the very rich dividend, and the fact that the company consistently has raised dividend payments, are all factors that make BCE stock quite attractive.

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Chart: finviz.com

Garmin Ltd. (NASDAQ:GRMN)

Garmin Ltd., designs, develops, manufactures, and markets hand-held, portable and fixed-mount global positioning system (NYSE:GPS).

Garmin has no debt at all, and it has a low trailing P/E of 13.11 and a forward P/E of 15.19. The current ratio is very high at 3.80, and the average annual earnings growth estimates for the next five years is at 5.43%. The forward annual dividend yield is very high at 4.96%, and the payout ratio is at 65%. The annual rate of dividend growth for the last three years was very high at 33.89%, and over the past five years was also very high at 19.14%.

GRMN will report its latest quarterly financial results on July 30. GRMN is expected to post a profit of $0.65 a share, a 34% decline from the company's actual earnings for the same quarter a year ago.

All these factors -- The low multiples, the very rich dividend, and the fact that the company consistently has raised dividend payments - make GRMN stock quite attractive.

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Chart: finviz.com

Rogers Communications Inc. (NYSE:RCI)

Rogers Communications Inc. operates as a communications and media company in Canada.

Rogers Communications has a very low trailing P/E of 12.58 and a very low forward P/E of 11.68. The forward annual dividend yield is very high at 4.25%, and the payout ratio is only 49%. The annual rate of dividend growth for the last year was at 11.38%, for the last three years was at 16.01%, and over the past five years was very high at 32.02%.

RCI will report its latest quarterly financial results in July. RCI is expected to post a profit of $0.98 a share, a 8% rise from the company's actual earnings for the same quarter a year ago.

All these factors -- The very low multiples, the very rich dividend, and the fact that the company consistently has raised dividend payments - make RCI stock quite attractive.

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Chart: finviz.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.