In a previous study, we showed that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. Dividend stocks beat the overall market by an average of 1.36% per year in that period. We like high-dividend yielding stocks and we believe that these stocks will outperform 10-year treasuries over the next decade.
Below we provide 10 high dividend technology stocks with strong earnings. All of these stocks have at least 15% in terms of profit margins. Each of these stocks had a 5% annual EPS growth rate over the past five years and a dividend yield of at least 4%. Data is sourced by Fidelity.
Cellcom Israel (CEL) provides cellular communications in Israel. The company has a high trailing 12-month dividend yield of 16.4% and has so far lost about 30% of its value this year. Profit margin rests at about 18% while the five-year historical EPS growth rate is 28%.
Mind (MNDO) is involved in customer care software for communications companies. MNDO has a high dividend yield of 16% and has so far lost 8% this year. This stock has a 16% profit margin an EPS growth rate (five-year historical) around 8%.
INCREDIMAIL (MAIL) is an Internet content and media company. MAIL has a high dividend yield of 14.1% and has so far lost about 16% this year. This stock has a 29% profit margin an EPS growth rate of 40%.
Telular (WRLS) is involved in wireless phone and security systems. WRLS has a high dividend yield of 6.8% and has so far lost 5% this year. This stock has a 78% profit margin an EPS growth rate of 25%.
USA MOBILITY (USMO) provides wireless communications to various health, govt, enterprise and emergency response firms. USMO has a high dividend yield of 6.7% and has so far lost 11% this year. This stock has a 49% profit margin an EPS growth rate of 49%.
AT&T (T) is a provider of telecommunications services in the United States and worldwide. AT&T has a high dividend yield of 5.9% and has so far gained 3% this year. This stock has a 16% profit margin an EPS growth rate of 18%. Billionaire hedge fund manager Jim Simons has one of the largest positions in T among the 300+ hedge funds we are tracking.
Technical Communications (TCCO) is involved in communications security devices and systems. TCCO has a high dividend yield of 5.3% and has so far lost 44% this year. This stock has a 31% profit margin an EPS growth rate of 193%.
Microchip Technology (MCHP) develops and manufactures semiconductor products. MCHP has a high dividend yield of 4.4% and has so far lost 4% this 14 year. This stock has a 29% profit margin an EPS growth rate of 56%.
Intel (INTC) is a semiconductor chip maker company. INTC has a high dividend yield of 4.3% and has so far lost 4% this year. This stock has a 25% profit margin an EPS growth rate of 8%. Simons also has a $280 million position in this high dividend yielder. Billionaire investor Ken Fisher has a larger bet on the stock though. Fisher had $431 million in INTC at the end of June.
KLA-Tencor (KLAC) is involved in process control and yield management solutions for the semiconductor and nanoelectronics industries. KLAC has a high dividend yield of 4.1% and has so far lost 6% this year. This stock has a 25% profit margin an EPS growth rate of 20%. David Tepper had a $54 million position in KLAC at the end of June. However, Tepper cut his position in the company by 17% during the second quarter.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
