4 Tech Stocks Paying Dividends With Strong Corporate Governance

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 |  Includes: DNB, INTC, MSFT, TXN
by: Kapitall

It’s important to remember that stocks represent ownership interests in companies run by real management teams. How well a company is run has big implications to its profitability and its ability to maintain its dividend yield.

One way to evaluate this is by looking at the corporate governance policies of the company, such as its board composition and shareholder rights. Institutional Shareholder Services (ISS) gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on stocks from the tech sector that pay dividend yields above 2% and sustainable payout ratios below 50%. We screened these stocks for those with “low risk” ratings from ISS in all four corporate governance areas.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 are being run well? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Intel Corporation (NASDAQ:INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $108.28B. Dividend yield at 4.07%, payout ratio at 29.97%. According to ISS, the company has "low concern" in all corporate governance categories. It's been a rough couple of days for the stock, losing 7.28% over the last week.

2. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $205.52B. Dividend yield at 3.26%, payout ratio at 23.33%. According to ISS, the company has "low concern" in all corporate governance categories. Might be undervalued at current levels, with a PEG ratio at 0.81, and P/FCF ratio at 10.56. The stock is currently stuck in a downtrend, trading 5.5% below its SMA20, 5.11% below its SMA50, and 5.25% below its SMA200. The stock has gained 5.19% over the last year.

3. Texas Instruments Inc. (NASDAQ:TXN):
Engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. Market cap of $30.57B. Dividend yield at 2.57%, payout ratio at 19.21%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 1.16% over the last year.

4. Dun & Bradstreet Corp. (NYSE:DNB):
Provides commercial information and insight on businesses worldwide. Market cap of $2.91B. Dividend yield at 2.43%, payout ratio at 27.45%. According to ISS, the company has "low concern" in all corporate governance categories. The stock is currently stuck in a downtrend, trading 6.66% below its SMA20, 10.11% below its SMA50, and 22.18% below its SMA200. It's been a rough couple of days for the stock, losing 5.95% over the last week.

*ISS ratings sourced from Yahoo! Finance, 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.