7 Technology Dividend Stocks For Income Investors

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 |  Includes: ADP, CTL, INTC, MSFT, T, TRI, VZ
by: Dividendinvestr

We believe technology stocks that have good dividend yields present investment opportunities. They not only deliver income but also have long-term growth potential.

Below we compiled a list of seven technology stocks that have dividend yields higher than 2.7%, market cap higher than $20 billion and their EPS are expected to grow by over 7% over the next five years. We have obtained market data from Finviz and Morningstar.

Stock

Market Cap

(Billion $)

Dividend Yield

P/E

Beta

Operating Margin

Profit Margin

Estimated EPS growth next 5 years

Automatic Data Processing (NASDAQ:ADP)

25,4

3,0%

18,7

0,69

19,8%

13,0%

9,8%

CenturyLink (NYSE:CTL)

24,0

7,5%

40,2

0,71

12,2%

3,1%

7,3%

Intel Corporation (NASDAQ:INTC)

131,2

3,2%

11,1

1,08

31,4%

23,2%

10,7%

Microsoft Corporation (NASDAQ:MSFT)

245,9

2,7%

10,6

1

38,0%

32,0%

8,9%

AT&T (NYSE:T)

197,3

5,2%

48,8

0,58

7,5%

3,4%

9,0%

Thomson Reuters Corporation (NYSE:TRI)

23,1

4,6%

0,0

0,94

-5,2%

-9,6%

9,3%

Verizon Communications (NYSE:VZ)

118,0

4,8%

44,7

0,52

12,2%

9,7%

9,2%

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* TRI has a forward P/E ratio of 12.7 and . The above table shows the trailing P/E ratios.

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Automatic Data Processing provides business outsourcing solutions. ADP is one of the business services and software companies hedge funds are buying. ADP recently traded at $51,99 and has a 3% dividend yield. ADP lost 1,3% during the past 12 months. The stock has a market cap of $25,4 billion, P/E ratio of 18,7 and Total Debt/Equity ratio of 0.27. ADP also had an EPS growth rate of 11,6% during the last five years.

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CenturyLink is an integrated telecommunications company operating in the United States. CTL recently traded at $38,59 and has a 7,5% dividend yield. CTL lost 4% during the past 12 months. The stock has a market cap of $24 billion, P/E ratio of 40,2 and Total Debt/Equity ratio of 1,11. CTL also had an EPS growth rate of -19% during the last five years.

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Intel Corporation provides integrated digital technology platforms worldwide. INTC recently traded at $26,07 and has a 3,2% dividend yield. INTC gained 14,5% during the past 12 months. The stock has a market cap of $131,2 billion, P/E ratio of 11,1 and Total Debt/Equity ratio of 0,16. INTC also had an EPS growth rate of 22,8% during the last five years.

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Microsoft Corporation is one of the leading technology companies providing software products and services for various computing devices worldwide. MSFT recently traded at $29,27 and has a 2,7% dividend yield. MSFT gained 21,7% during the past 12 months. The stock has a market cap of $245,9 billion, P/E ratio of 10,6 and Total Debt/Equity ratio of 0,17. MSFT also had an EPS growth rate of 17,6% during the last five years.

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AT&T provides telecommunications services worldwide. T recently traded at $33,66 and has a 5,2% dividend yield. T gained 13,6% during the past 12 months. The stock has a market cap of $197,3 billion, P/E ratio of 48,8 and Total Debt/Equity ratio of 0,63. T also had an EPS growth rate of -18,8% during the last five years.

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Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. TRI recently traded at $27,81 and has a 4,6% dividend yield. TRI lost 26% during the past 12 months. The stock has a market cap of $23,1 billion, P/E ratio of 0 and Total Debt/Equity ratio of 0,46. TRI also had an EPS growth rate of 5,1% during the last five years.

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Verizon Communications provides communications, information, and entertainment products and services worldwide. VZ recently traded at $41,53 and has a 4,8% dividend yield. VZ gained 17,3% during the past 12 months. The stock has a market cap of $118 billion, P/E ratio of 44,7 and Total Debt/Equity ratio of 1,41. VZ also had an EPS growth rate of -14,7% during the last five years.

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Overall, we like these dividend stocks. Dividend stocks were great investments in 2011 and they will be in 2012 as well.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.