Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Although high dividend yields are sometimes considered unsustainable, a fast-growing dividend can also be a sign of increased profitability.

Here we present a list of 20 tech stocks with 5-year dividend growth rates that far exceed their industry averages. These companies, along with pertinent data, are listed below.

click for expanded images

We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies will continue increasing their dividends? Use this list as a starting-off point for your own analysis.

List sorted by difference between company and industry 5-year dividend growth rate.

1. CenturyLink, Inc. (CTL): Telecom Services Industry. Market cap of $25.47B. Dividend yield at 6.84%. 5-year dividend growth rate at 64.6% vs. industry average at 12.18%. The stock has gained 33.86% over the last year.

2. Garmin Ltd. (GRMN): Scientific & Technical Instruments Industry. Market cap of $6.81B. Dividend yield at 4.27%. 5-year dividend growth rate at 43.1% vs. industry average at 2.39%. The stock is a short squeeze candidate, with a short float at 16.01% (equivalent to 11.91 days of average volume). The stock has gained 4.74% over the last year.

3. KLA-Tencor Corporation (KLAC): Semiconductor Equipment & Materials Industry. Market cap of $7.46B. Dividend yield at 2.25%. 5-year dividend growth rate at 37.97% vs. industry average at 2.37%. The stock has gained 45.96% over the last year.

4. Texas Instruments Inc. (TXN): Semiconductor Industry. Market cap of $40.85B. Dividend yield at 1.48%. 5-year dividend growth rate at 36.08% vs. industry average at 6.59%. The stock has gained 43.77% over the last year.

5. Harris Corp. (HRS): Communication Equipment Industry. Market cap of $6.22B. Dividend yield at 2.05%. 5-year dividend growth rate at 29.67% vs. industry average at 2.39%. The stock is a short squeeze candidate, with a short float at 5.8% (equivalent to 6.56 days of average volume).

6. Molex Inc. (MOLX): Diversified Electronics Industry. Market cap of $4.74B. Dividend yield at 2.97%. 5-year dividend growth rate at 32.39% vs. industry average at 7.91%. The stock is a short squeeze candidate, with a short float at 6.87% (equivalent to 9.91 days of average volume). The stock has gained 26.35% over the last year.

7. Applied Materials Inc. (AMAT): Semiconductor Equipment & Materials Industry. Market cap of $19.53B. Dividend yield at 2.16%. 5-year dividend growth rate at 24.57% vs. industry average at 2.37%. The stock has gained 16.81% over the last year.

8. Philippine Long Distance Telephone Co. (PHI): Telecom Services Industry. Market cap of $10.49B. Dividend yield at 6.37%. 5-year dividend growth rate at 31.36% vs. industry average at 12.18%. The stock has gained 12.39% over the last year.

9. TIM Participacoes S.A. (TSU): Wireless Communications Industry. Market cap of $11.26B. Dividend yield at 2.77%. 5-year dividend growth rate at 23.05% vs. industry average at 5.21%. The stock has gained 73.09% over the last year.

10. Intersil Corporation (ISIL): Semiconductor Industry. Market cap of $1.86B. Dividend yield at 3.24%. 5-year dividend growth rate at 23.07% vs. industry average at 6.59%. The stock has gained 12.7% over the last year.

11. National Instruments Corporation (NATI): Technical & System Software Industry. Market cap of $3.55B. Dividend yield at 1.34%. 5-year dividend growth rate at 21.06% vs. industry average at 5.71%. The stock has gained 41.37% over the last year.

12. QUALCOMM Incorporated (QCOM): Communication Equipment Industry. Market cap of $95.36B. Dividend yield at 1.51%. 5-year dividend growth rate at 17.61% vs. industry average at 2.39%. The stock has gained 55.85% over the last year.

13. Analog Devices Inc. (ADI): Semiconductor Circuits Industry. Market cap of $12.22B. Dividend yield at 2.16%. 5-year dividend growth rate at 21.29% vs. industry average at 6.59%. The stock has gained 50.85% over the last year.

14. China Mobile Limited (CHL): Wireless Communications Industry. Market cap of $181.45B. Dividend yield at 4.28%. 5-year dividend growth rate at 19.61% vs. industry average at 5.21%. The stock has lost 0.44% over the last year.

15. Linear Technology Corp. (LLTC): Semiconductor Industry. Market cap of $7.90B. Dividend yield at 2.76%. 5-year dividend growth rate at 20.11% vs. industry average at 6.59%. The stock has gained 26.21% over the last year.

16. International Business Machines Corp. (IBM): Diversified Computer Systems Industry. Market cap of $205.81B. Dividend yield at 1.77%. 5-year dividend growth rate at 26.23% vs. industry average at 13.68%. The stock has gained 31.84% over the last year.

17. Blackbaud Inc. (BLKB): Business Software & Services Industry. Market cap of $1.29B. Dividend yield at 1.66%. 5-year dividend growth rate at 17.08% vs. industry average at 5.71%. The stock has had a couple of great days, gaining 9.84% over the last week.

18. Shenandoah Telecommunications Co. (SHEN): Telecom Services Industry. Market cap of $403.61M. Dividend yield at 1.94%. 5-year dividend growth rate at 16.57% vs. industry average at 5.21%. The stock is currently stuck in a downtrend, trading 5.86% below its SMA20, 5.37% below its SMA50, and 7.17% below its SMA200. The stock has lost 10.63% over the last year.

19. Automatic Data Processing, Inc. (ADP): Business Software & Services Industry. Market cap of $26.99B. Dividend yield at 2.67%. 5-year dividend growth rate at 17.41% vs. industry average at 6.55%. The stock has gained 33.39% over the last year.

20. Turkcell Iletisim Hizmetleri AS (TKC): Wireless Communications Industry. Market cap of $12.36B. Dividend yield at 4.35%. 5-year dividend growth rate at 15.52% vs. industry average at 5.21%. The stock has gained 3.01% over the last year.

*Dividend growth rates sourced from Reuters, all other data sourced from Finviz.

Source: 20 Tech Stocks With the Fastest Growing Dividends