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As cloud tech steals the market buzz and news highlights, many strong tech companies have transitioned into solid blue chip dividend growth stocks. Most strong dividend stocks trade for mid-range P/Es and have limited growth prospects. However, there are 4 tech stocks that currently provide respectable yields with strong underlying balance sheets. All of these picks have strong upside value potential due to their large cash hordes and their recent low P/E trading range.

Intel (NASDAQ:INTC):

  • Yield of 4% (quarterly @ 21 cents); 5-yr annualized growth of 16%
  • P/E Ratio: 9.5
  • Debt/Assets: 3.4%
  • Debt/Equity: 4.3%
  • Current Ratio: 3.4
  • Net Cash: $11.5B on hand

Microsoft (NASDAQ:MSFT):

  • Yield of 2.5% (quarterly @ 16 cents); 5-yr annualized growth of 10%
  • P/E Ratio: 9.5
  • Debt/Assets: 11%
  • Debt/Equity: 21%
  • Current Ratio: 2.6
  • Net Cash: $52.8 on hand

Hewlett-Packard (NYSE:HPQ):

  • Yield of 1.5% (quarterly @ 12 cents); 5-yr annualized growth of 8.5%
  • P/E Ratio: 8
  • Debt/Assets: 18%
  • Debt/Equity: 55%
  • Current Ratio: 1.1
  • Net Cash: $12.7B on hand

IBM (NYSE:IBM):

  • Yield of 1.7% (quarterly @ 75 cents); 5-yr annualized growth of 20%
  • P/E Ratio: 14
  • Debt/Assets: 25%
  • Debt/Equity: 124%
  • Current Ratio: 1.2
  • Cash: $11.7B on hand



Disclosure: I am long MSFT, HPQ, INTC.

Source: 4 Strong Value Dividend Growth Tech Stocks