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This article reviews five mature, dividend paying technology stocks, with the purpose of determining if any of them could be a treasured addition to your portfolio. Each of these stocks has a long and successful operating history.

Microsoft Corporation (MSFT) MSFT has a market cap of $228.81 billion with a price-to-earnings ratio of 10.15. The stock has traded in a 52 week range between $23.65 and $29.46. The stock is currently trading around $27. The company reported fourth quarter revenues for the period ending on June 30th, in the amount of $17.4 billion, compared to revenues of $16 billion in the fourth quarter of 2010. Fourth quarter net income was $5.87 billion compared to net income of $4.52 billion in the fourth quarter of 2010.

One of Microsoft’s competitors is Oracle Corporation (ORCL). ORCL is currently trading around $32 with a market cap of $160.82 billion and a price to earnings ratio of 18.13. ORCL pays a dividend which yields 0.80% versus MSFT whose dividend yields 2.9%.

MFST is the largest designer and manufacturer of computer operating systems in the world. The company has increased its net income in eight out of the last ten years. In the 2011 fiscal year, the company increased its net income by 22.8%. MFST has been paying quarterly dividends since 2006 and currently pays a dividend of $0.80. The stock price has increased by 4.49% over the last 52 weeks and 22.3% over the last three years. MSFT has seen its desktop computer business slow, and has tried to make inroads into the mobile computing business. Unfortunately for MSFT, Apple Inc. (OTC:APPL) is in the way. The company’s recent purchase of SKYPE has also opened up opportunities for earnings growth. I think that MSFT is unlikely to provide its investors with oversized investment returns anytime soon. However, MSFT is a sound investment for those who want to own a company with consistent income and a secure dividend. I rate MSFT as a buy.

KLA-Tencor Corporation (KLAC) KLAC has a market cap of $7.31 billion with a price to earnings ratio of 9.39. The stock has traded in a 52 week range between $33.20 and $51.83. The stock is currently trading around $44. The company reported fourth quarter revenues for the period ending on June 30th, in the amount of $892 million, compared to revenues of $559 million in the fourth quarter of 2010. Fourth quarter net income was $245 million compared to net income of $212 million in the fourth quarter of 2010.

One of KLAC competitors is Applied Materials Inc. (AMAT). AMAT is currently trading around $12 with a market cap of $15.36 billion and a price to earnings ratio of 8.04. AMAT pays a dividend which yields 2.8% versus KLAC whose divided yields 3.2%.

KLAC designs and manufactures semiconductor equipment. KLAC has done a fantastic job of increasing its earnings. In the 2010 fiscal year the company increased its net income by $735 million. In the 2011fiscal year, the company increased its net income by $582 million or 274%. Investors have taken notice of the company's rapidly increasing earnings, and have pushed up the stock price by 32.66% over the last 52 weeks, and 118% over the past three years. In addition to growing its stock price, the company has also done a great job of growing its dividend. Since 2006, the company has increased its dividend by 133%. Investors in KLAC have already received an excellent return on their investment. However, with a price to earnings ratio of 9.39 and a price to book ratio of 2.56, the stock is still cheap. KLAC offers investors the potential for capital appreciation along with a strong and growing dividend income. I rate KLAC as a strong buy.

Xilinx Inc. (XLNX) XLNX has a market cap of $8.17 billion with a price to earnings ratio of 13.01. The stock has traded in a 52 week range between $24.77 and $37.37. The stock is currently trading around $31. The company reported 2012 first quarter revenues for the period ending on July 2nd, in the amount of $615.4 million, compared to revenues of $594.2 million in the first quarter of 2011. First quarter net income was $154.3 million compared to net income of $158.5 million in the first quarter of 2010.

One of XLNX’s competitors is Altera Corporation (ALTR). ALTR is currently trading around $35 with a market cap of $11.37 billion and a price to earnings ratio of 12.88. ALTR pays a dividend which yields 0.9% versus XLNX whose dividend yields 2.5%.

XLNX designs and markets semiconductor devices. The company has been profitable in nine out of the last ten years and increased its 2011 fiscal year income by 79.8%. XLNX has paid quarterly dividends since 2004 and since 2006 it has increased its dividend five times by 171%. The company’s stock price has performed well and is up by 16.9% over the last 52 weeks and 62.6% over the last three years. XLNX is a company that has given its investors consistent earnings and a healthy dividend income. However, if I were to invest in a semiconductor company I would prefer KLAC. I rate XLNX as a hold.

Tellabs Inc. (TLAB) TLAB has a market cap of $1.59 billion with a price to earnings ratio of $396.36. The stock has traded in a 52 week range between $3.67 and $8.08. The stock is currently trading around $4. The company reported second quarter revenues of $334.2 million compared to revenues of $442.8 million in the second quarter of 2010. Second quarter net income was $-20.1 million compared to net income of $64.1 million in the second quarter of 2010.

One of TLAB’s competitors is Alcatel-Lucent (ALU). ALU is currently trading around $3 with a market cap of $6.28 billion and a price to earnings ratio of 12.75. ALU does not pay a dividend versus TLAB whose dividend yields 1.9%.

TLAB provides routers for wireless service providers like Verizon (VZ) and AT&T (T). The company has recently seen its business slip and has posted earnings losses in each of its last three quarters. Second quarter earnings per share were down by 112%. Predictably the stock price has taken a significant hit, and the stock price is down by 42.71% over the last 52 weeks. TLAB has lost business because its routers have not kept up with technological advances. The company has invested heavily in a new product called the Smartcore 9200. The Smartcore 9200 series should become available in early 2012. TLAB hopes that the Smartcore 9200 series will turn the company’s declining revenues around. The future for TLAB is very cloudy and with a dividend yield of only 1.9% I see no reason to hold on to this stock. I rate TLAB as a sell.

Xerox Corporation (XRX) XRX has a market cap of $10.72 billion with a price to earnings ratio of 10.99. The stock has traded in a 52 week range between $6.55 and $12.08. The stock is currently trading around $7.65. The company reported second quarter revenues of $5.61 billion compared to revenues of $5.51 billion in the second quarter of 2010. Second quarter net income was $501 million compared to net income of $423 million in the second quarter of 2010.

One of XRX’s competitors is the Ricoh Company Ltd. (OTCPK:RICOY) RICOY.OB is currently trading around $45 with a market cap of $32.44 billion and a price to earnings ratio of 160.25. RICOY.OB pays a dividend which yields 4.2% versus XRX whose dividend yields 2.3%.

XRX is a provider of photocopiers and document systems. The company has seen it earnings decrease by 102% over the last five years. The company has been making an effort to change itself from a copier company to a service company and now sales supplies, such as toner, paper and ink. The change in the business model has helped the business, and the company’s 2010 net income increased by 18.9%. Investors were not impressed by the company’s 2010 earnings results, and the stock price is down by 32.4% over the last three months. The company has been paying quarterly dividends since 2008, and the annual dividend amount has been $0.17. XRX is an old technology company with no new or innovative products in its future. The company is unlikely to provide investors with any significant capital or dividend appreciation. I rate XRX as a hold.

Source: 2 High-Yield Tech Stocks To Buy, 3 To Avoid