7 Tech Stocks With Rising Dividends and Good Liquidity Coverage

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 |  Includes: ADI, HRS, INTC, KLAC, NSM, ROK, XLNX
by: Kapitall

A company’s dividend can be funded from various sources, although some are preferred over others. The most preferable is cash from operations, but in the event that a company’s operations suffer from a temporary dip, the dividend can be maintained by cash holdings or selling other liquid sources such as securities.

Therefore, highly liquid companies are often more likely to have sustainable dividends.

We ran a screen on tech-sector dividend stocks for those that have seen significant increases in dividend per share, with the current year estimate at least 10% higher than last year’s dividend. We then searched for those with most recent quarter current assets at least 20% higher than current liabilities. We controlled for sustainable dividend yields below 7% and payout ratios below 35%.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



We also created a price-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 pay attractive dividends? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $122.42B. Dividend yield at 3.64%, payout ratio at 30.27%. Current assets at $22.80B vs. current liabilities at $11.57B. Current year dividend per share estimate at $0.75 vs. last year's dividend per share of $0.63. The stock has gained 17.75% over the last year.

2. Analog Devices Inc. (NASDAQ:ADI): Semiconductor Industry. Market cap of $11.87B. Dividend yield at 2.52%, payout ratio at 29.83%. Current assets at $4.29B vs. current liabilities at $588.2M. Current year dividend per share estimate at $0.94 vs. last year's dividend per share of $0.84. The stock has gained 38.73% over the last year.

3. KLA-Tencor Corporation (NASDAQ:KLAC):
Semiconductor Equipment and Materials Industry. Market cap of $7.09B. Dividend yield at 2.37%, payout ratio at 22.78%. Current assets at $3.43B vs. current liabilities at $856.74M. Current year dividend per share estimate at $1.00 vs. last year's dividend per share of $0.60. The stock has gained 44.3% over the last year.

4. Harris Corp. (NYSE:HRS): Communication Equipment Industry. Market cap of $5.67B. Dividend yield at 2.24%, payout ratio at 20.59%. Current assets at $2.63B vs. current liabilities at $1310.10M. Current year dividend per share estimate at $1.00 vs. last year's dividend per share of $0.88. The stock is a short squeeze candidate, with a short float at 9.42% (equivalent to 10.83 days of average volume). The stock has gained 6.15% over the last year.

5. Xilinx Inc. (NASDAQ:XLNX): Semiconductor Industry. Market cap of $9.63B. Dividend yield at 2.10%, payout ratio at 25.96%. Current assets at $2.62B vs. current liabilities at $368.14M. Current year dividend per share estimate at $0.73 vs. last year's dividend per share of $0.64. The stock is a short squeeze candidate, with a short float at 9.75% (equivalent to 6.01 days of average volume). The stock has gained 34.07% over the last year.

6. Rockwell Automation Inc. (NYSE:ROK):
Industrial Electrical Equipment Industry. Market cap of $12.65B. Dividend yield at 1.94%, payout ratio at 33.76%. Current assets at $2.95B vs. current liabilities at $1.18B. Current year dividend per share estimate at $1.40 vs. last year's dividend per share of $1.22. The stock has had a good month, gaining 10.61%.

7. National Semiconductor Corporation (NSM):
Semiconductor Industry. Market cap of $6.02B. Dividend yield at 1.61%, payout ratio at 30.74%. Current assets at $1.60B vs. current liabilities at $195.5M. Current year dividend per share estimate at $0.42 vs. last year's dividend per share of $0.38. The stock has gained 79.44% over the last year.

*Current assets and liabilities data and dividend per share data sourced from Screener.co, all other data sourced from Finviz.

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