Tech is always an exciting sector, and even more so when growth opportunities still abound. Today we focused on tech stocks that have strong projected growth on the horizon, and that currently have a reliable track record of sustainable dividend payouts. To focus in on the cream of the crop, we screened for only those stocks that analysts rate as 'Buy', or 'Strong Buy'. We came up with a rather interesting list; tell us what you think.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for technology dividend stocks. Next, we then screened for businesses that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%). We then looked for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any market caps.
Do you think these stocks are worth more than their current valuations? Use this list as a starting-off point for your own analysis.
1) Hickory Tech Corp. (HTCO)
|Industry:||Telecom Services - Domestic|
Hickory Tech Corp. has a Dividend Yield of 5.50%, a Payout Ratio of 78.33%, a 1-Year Projected Earnings Per Share Growth Rate of 27.10%, and a Analysts' Rating of 1.00. The short interest was 3.55% as of 06/18/2012. Hickory Tech Corporation provides integrated communications services to business and residential customers in the Midwest. The company operates in two segments, Business Sector and Telecom Sector. The Business Sector segment offers integrated data services, such as fiber, data and Internet, voice and voice over Internet protocol, managed and hosted, data center, equipment, and total care support services. This segment also distributes telecommunications and data processing equipment, as well as provides network and equipment monitoring, maintenance, and equipment consulting services; and offers fiber-based transport for regional and national telecommunications carriers, wireless carriers, and other providers.
2) Cypress Semiconductor Corporation (CY)
|Industry:||Semiconductor - Broad Line|
Cypress Semiconductor Corporation has a Dividend Yield of 3.26%, a Payout Ratio of 64.46%, a 1-Year Projected Earnings Per Share Growth Rate of 44.83%, and a Analysts' Rating of 2.30. The short interest was 6.42% as of 06/18/2012. Cypress Semiconductor Corporation designs, develops, manufactures, and markets mixed-signal and programmable solutions worldwide. Its Consumer and Computation division offers programmable system-on-chip (PSoC) devices for consumer, industrial, medical, and system management applications; TrueTouch touchscreen controllers; CapSense touch-sensing solutions; universal serial bus (USB) controllers, USB hubs, transceivers, serial interface engines, and embedded-host products; WirelessUSB; programmable clocks for devices requiring multiple frequencies; and RoboClock clock buffers that offer timing solutions. The company's Data Communications division provides peripheral bridge controllers to enable direct connection between peripherals; dual-port memories that are compelling solutions for interprocessor communication; FIFO Memories that are used as buffer between systems operating at various frequencies; physical layer devices; programmable logic devices; PowerPSoC embedded power controllers; PSoC-based programmable Powerline Communications solutions; and EZ-Color LED lighting solutions.
3) Seagate Technology PLC (STX)
|Industry:||Data Storage Devices|
Seagate Technology PLC has a Dividend Yield of 4.24%, a Payout Ratio of 17.48%, a 1-Year Projected Earnings Per Share Growth Rate of 32.49%, and a Analysts' Rating of 2.40. The short interest was 6.10% as of 06/18/2012. Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide. The company's products are used in enterprise servers, mainframes, and workstations; desktop and notebook computers; digital video recorders; personal data backup systems; portable external storage systems; and digital media systems. It also provides data storage services for small to medium-sized businesses, including online backup, data protection, and recovery solutions; and ships external backup storage solutions under its Free Agent Go and Free Agent Go Flex product lines.
4) Brooks Automation Inc. (BRKS)
|Industry:||Semiconductor Equipment & Materials|
Brooks Automation Inc. has a Dividend Yield of 3.32%, a Payout Ratio of 17.53%, a 1-Year Projected Earnings Per Share Growth Rate of 29.85%, and a Analysts' Rating of 2.50. The short interest was 3.54% as of 06/18/2012. Brooks Automation, Inc. provides automation, vacuum, and instrumentation solutions for semiconductor manufacturing, life sciences, and clean energy markets worldwide. The company's Brooks Product Solutions segment provides a range of products critical to technology equipment productivity and availability. This segment's products include atmospheric and vacuum tool automation systems, atmospheric and vacuum robots and robotic modules, and cryogenic vacuum pumping, thermal management, and vacuum measurement solutions, which are used to create, measure, and control critical process vacuum applications.
5) ClickSoftware Technologies Ltd. (CKSW)
|Industry:||Internet Software & Services|
ClickSoftware Technologies Ltd. has a Dividend Yield of 3.81%, a Payout Ratio of 93.04%, a 1-Year Projected Earnings Per Share Growth Rate of 50.00%, and a Analysts' Rating of 1.80. The short interest was 1.77% as of 06/18/2012. ClickSoftware Technologies Ltd. provides software products and solutions for workforce management and optimization in the Americas, Israel, the Asia Pacific, Europe, the Middle East, and Africa. It offers Field Service Daily Suite that covers automatic decision making and optimization support to manage field service operations; Roster Suite, which covers shift planning needs for managers and employees; and ClickMobile and Mobility Suite that covers the needs of mobile individual and back-office staff for field data communication. The company also provides ClickSchedule that optimizes service scheduling and routing to improve workforce productivity; ClickAnalyze, which offers reporting, monitoring, and service business analytics for workforce performance measurement and strategic decision support; ClickLocate that captures the location information of a field service engineer and vehicle; ClickContact, a customer interaction management solution; ClickRoster that provides interactive and automated workforce shift planning based on forecasted workload; ClickPlan, which offers interactive and automated workforce planning for staffing and deployment; and ClickForecast that enable companies to project workforce capacity.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.