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Technology is one of the most promising sectors. It always changes and therefore offers new opportunities to investors. That’s why this is one of the best sectors for speculative investing. Stocks of this sector may provide some quite impressive returns at times. Therefore, we decided to look for the top nine technology stocks with substantial dividends, and a maximum P/E ratio of 20. All of the following companies offer a minimum 3% dividend yield, and have a minimum market capitalization of $300 million. Data is derived from finviz. While there are hundreds of technology companies listed on the NYSE, only the following technology companies fit this criteria:

Comtech Telecommunications Corp. (CMTL): Comtech designs and develops systems and services for advanced communications solutions. The market cap of CTML is $789 million, and P/E ratio is 11.5, while forward P/E is 25.2. The company had an average EPS growth of 6.09% over the last five years. With a net profit margin of 9.46%, AGL Resources had a dividend yield of 3.61% last year. Recent dividend payment are as follows:

Jan 19, 2011

$0.25

Oct 20, 2010

$0.2

Consolidated Communications Holdings, Inc. (CNSL): Providing communications services to residential and business customers in Texas, Pennsylvania and Illionis, Consolidated Communications offers a range of telecommunications services. The market cap of CNSL is $548.4 million, and its P/E ratio is 16.9, while forward P/E ratio is 21.43. The company had an EPS growth of 11.15% over the last five years. With a net profit margin of 8.5%, and a dividend yield of 8.41%, CNSL is quite a nice stock for dividend lovers. Recent dividend payments of CNSL per share are as follows:

Jan 12, 2011

$0.387

Oct 13, 2010

$0.387

Jul 13, 2010

$0.387

Apr 13, 2010

$0.387

CenturyLink, Inc. (CTL): As an integrated communications company, Luisiana based CenturyLink provides a range of communications services. CTL has a market capitalization of $12.5 billion, and a P/E ratio of 13.11, while forward P/E ratio is 13.41. CenturyLink had an average EPS growth of 4.75% during the last five years. Net profit margin in 2010 was 13.46%, while the company offered a dividend yield of 7.07%. Recent dividend payments of are as follows:

Feb 16, 2011

$0.725

Dec 3, 2010

$0.725

Sep 2, 2010

$0.725

Jun 4, 2010

$0.725

IDT Corp. (IDT): IDT is a telecommunications and energy company operating in three segments: Genie Energy, Telecom Platform Services and Consumer Phone Services. The market cap of IDT is $693.6 million, and P/E ratio is 15.36, while forward P/E is 23.17. IDT had an EPS growth of 19.94% over the last five years. Net profit margin in 2010 was 2.70%, while the company offered a dividend yield of 3.16% over the same period. Recent dividend history is as follows:

Dec 14, 2010

$0.22

Nov 10, 2010

$0.22

Intel Corp. (INTC): Intel Corp., founded in 1968, is among the oldest global technology titans around the world. The market cap of Intel Corp. is $108.22 billion, and P/E ratio is 9.81, while forward P/E ratio is 9.05. Intel Corp’s net profit margin was 26.28%, and last year’s dividend was 3.68%. The company had an average EPS growth of 7.49% over the last five years. INTC's recent dividend payments per share are as follows:

Feb 3, 2011

$0.181*

Nov 3, 2010

$0.158

Aug 4, 2010

$0.158

May 5, 2010

$0.158

*As you might notice the quarterly dividends are up by 23 cents.

Microchip Technology Inc. (MCHP): As a developer, manufacturer and seller of semiconductor products for various embedded control applications, Arizona based Microchip offers a variety of microcontroller products. The market capital of MCHP is $7.14 billion, and P/E ratio is 19.45, while forward P/E ratio is 16.0. The company had an average EPS growth of 2.81% over the last five years. Microchip Technology’s net profit margin was 26.65%, and last year’s dividend was 3.64%. MCHP's recent dividend payments per share are as follows:

Dec 9, 2010

$0.345

Nov 16, 2010

$0.344

Aug 17, 2010

$0.343

May 17, 2010

$0.342

Ntelos Holdings Corp. (NTLS): Virginia based Ntelos provides integrated communications services primarily in Tennessee, Virginia and West Virginia. The market cap of NTLS is $774.04 million, and P/E ratio is 17.19, while forward P/E ratio is 11.35. The company had a huge EPS growth over the last five years. With a net profit margin of 8.21%, Ntelos Holdings had a dividend yield of 6.09% last year. Recent dividend history is as follows:

Mar 11, 2011

$0.28

Dec 10, 2010

$0.28

Sep 10, 2010

$0.28

Jun 10, 2010

$0.28

AT&T Inc. (T): A worldwide company offering wireless voice communications services, AT&T Inc. provides telecommunication products and services to consumers and businesses. The market has not yet priced AT&T's monopolistic power in the aftermath of the T-Mobile acquisition. Market cap of AT&T is $181 billion, and P/E ratio is 9.51. AT&T had an EPS growth of 17.77% over the last five years. Last year’s dividend was 5.62%, and the company had a net profit margin of 15.98%. Recent dividend payments per share are as follows:

Jan 6, 2011

$0.43

Oct 6, 2010

$0.42

Jul 7, 2010

$0.42

Apr 7, 2010

$0.42

USA Mobility Inc. (USMO): Virginia-based USA Mobility provides wireless communications solutions to the government, healthcare, enterprise and emergency response sectors. The market cap of USA Mobility is $326.2 million, and P/E ratio is 4.25, while forward P/E ratio is 7.61. USMO had a whopping EPS growth of 48.96% over the last five years. With a net profit margin of 33.4% and a dividend yield of 6.78%, USA Mobility is more profitable than AT&T. Recent dividend payments share are as follows:

Mar 15, 2011

$0.25

Nov 16, 2010

$1.25

Aug 17, 2010

$0.25

May 18, 2010

$0.25

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: The information has been checked for accuracy from a variety of resources, but no data is perfect. Measurements are subject to calculation as well as estimation errors. As always, do your own diligence when investing.

Source: 9 Technology Companies Paying Substantial Dividends