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A company’s owners (or, shareholders) have very different goals than company management. Specifically, a company’s owners seek to maximize the value of the company, while company management often wishes to maximize personal wealth.

Corporate governance policies mitigate these differences and protect shareholder interests, but some companies have stronger policies than others.

Companies with stronger corporate governance policies are viewed as safer investments to shareholders over the long term. 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 the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages. We then screened these stocks for those with “low risk” ratings on all four corporate governance ratings from ISS.

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 protect shareholder interests? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap of $365.83B. The stock is currently trading at 3.26% above its 20-Day SMA, 0.74% above its 50-Day SMA, and 7.72% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 23.1% over the last year.

2. International Business Machines Corp. (NYSE:IBM): Provides information technology (IT) products and services worldwide. Market cap of $229.31B. The stock is currently trading at 4.55% above its 20-Day SMA, 5.97% above its 50-Day SMA, and 13.79% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 36.62% over the last year.

3. AT&T, Inc. (NYSE:T): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap of $172.03B. The stock is currently trading at 1.18% above its 20-Day SMA, 0.77% above its 50-Day SMA, and 0.22% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 6.45% over the last year.

4. Oracle Corporation (NYSE:ORCL): Develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. Market cap of $159.86B. The stock is currently trading at 2.23% above its 20-Day SMA, 1.32% above its 50-Day SMA, and 1.02% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 6.56% over the last year.

5. Intel Corporation (NASDAQ:INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $127.35B. The stock is currently trading at 2.73% above its 20-Day SMA, 5.53% above its 50-Day SMA, and 15.14% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.36%, current ratio at 2.24, and quick ratio at 1.91. The stock has gained 18.19% over the last year.

6. Verizon Communications Inc. (NYSE:VZ): Provides communication services. Market cap of $108.80B. The stock is currently trading at 3.78% above its 20-Day SMA, 4.14% above its 50-Day SMA, and 7.01% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 19.02% over the last year.

7. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap of $101.50B. The stock is currently trading at 2.40% above its 20-Day SMA, 6.44% above its 50-Day SMA, and 13.53% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 3.08% over the last year.

8. Dell Inc. (NASDAQ:DELL): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap of $28.37B. The stock is currently trading at 3.61% above its 20-Day SMA, 2.31% above its 50-Day SMA, and 2.17% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 13.68% over the last year.

9. VeriSign, Inc. (NASDAQ:VRSN): Provides Internet infrastructure services to various networks worldwide. Market cap of $5.40B. The stock is currently trading at 3.43% above its 20-Day SMA, 7.35% above its 50-Day SMA, and 4.42% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 2.88% over the last year.

10. Morningstar Inc. (NASDAQ:MORN): Provides independent investment research to investors worldwide. Market cap of $2.95B. The stock is currently trading at 0.22% above its 20-Day SMA, 0.49% above its 50-Day SMA, and 0.68% above its 200-Day SMA. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 12.29% over the last year.

*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.

Source: 10 Rallying Tech Stocks With Strong Corporate Governance