Xperi, TiVo And Daktronics Are Broker Top Technology 'Safer' Dividend Net Gainer Picks To September 2018

Sep. 13, 2017 9:55 AM ET, , , , , , , , , , , , , ,

Summary

  • Top "safer" dividend Technology dog, Xperi, showed 96.8% estimated gains. Ten averaged 38.5%. Targets showed 'Safer' Dividend Technology dogs as oversold as single-share prices exceeded dividends derived from $1k invested.
  • 65 of 94 Technology Sector stocks were tagged "safer" for dividends because they showed positive one-year returns and free cash flow yields greater than dividend yields as of 9/8/17.
  • Top 10 "safer" September Technology annual dividend yields ranged 3.8% to 7.88% from CSCO; HNHPF; GRMN; TIVO; AMSWA; IBM; EVSBY; AUO; QCOM; STX. Their free cash flow yields ranged 4.22%-21.49%.
  • Besides safety margin, Technology dogs also reported payout ratios (lower is better), total annual returns, and dividend growth, to further gauge their dividend reliability. Total annual returns narrowed the "Safer"  Technology list of 94 to 77 by excluding firms reporting negative numbers.
  • Analyst one-year targets revealed that the lowest priced five of ten highest yield "safer" dividend Technology stocks will likely produce 19.81% LESS gain from $5k invested than from the same investment in all ten.

Actionable Conclusion (1-10): Analysts Guessed Top Ten Technology "Safer" Dividend Dog Stocks Could Net 14.5% to 96.8% Gains By September, 2018

Four of the ten top dividend Technology dogs by yield (shaded in the chart above) were verified as being among the Top ten gainers for the coming year based on analyst 1 year target prices. Thus the dog strategy for this Technology group as graded by analyst estimates for July proved 40% accurate.

Ten probable profit generating trades were illustrated by YCharts analytics for 2018:

Xperi (XPER) netted 968.37 based on estimates from four analysts, plus dividends less broker fees. The Beta number showed this estimate subject to volatility 24% less than the market as a whole.

TiVo (TIVO) netted $588.84 based on mean target price estimates from five analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 86% less than the market as a whole.

Daktronics (DAKT) netted $469.05 based on dividends plus a median target price estimate from two analysts less broker fees. The Beta number showed this estimate subject to volatility 25% more than the market as a whole.

PCTEL (PCTI) netted $441.91 based on a median target price estimate from two analysts, plus projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 31% less than the market as a whole.

Magic Software (MGIC) netted $386.13 based on a median target price set by four analysts plus estimated dividends less broker fees. The Beta number showed this estimate subject to volatility 36% less than the market as a whole.

Cypress Semiconductor (CY) netted $289.58, based on dividend, plus a median target price estimate from fourteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 99% more than the market as a whole.

This article was written by

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Fredrik Arnold is a retired quality service analyst sharing investment ideas with a primary focus on dividend yields by utilizing free cash flow and one-year total returns as trading indicators.

He is the leader of the investing group The Dividend Dog Catcher, where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn more.

Analyst’s Disclosure:I am/we are long CSCO, INTC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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