I know, the last few days have been volatile and opening minutes of April 1 stocks have been falling, for investors this could be the perfect time for bargain-hunting, BUT given the unsteadiness of the market with the rate rise and we are allowed to question is there there any good investment. If there is anything to pick up, might as well those with “sure money” in the form of dividends right? I’ll have some of that. Here’s a great list from Dow Jones Newswires that mainly discuss Tech stocks — they argue that technology sector “has a solid free cash flow margin of 21.3%, along with an average free cash flow yield of 6%, which he said is significantly higher than the average of 3.6%.
We pared the list to 20 tech stocks with market values of more than $500 million and dividend yields of over 1%, with the highest “headroom” for dividend increases, based on their free cash flow over the past 12 months:
Company Ticker Closing price – March 30 Free cash flow per share – last 12 months Free cash flow yield Annual dividend Dividend yield “Headroom”
Computer Sciences Corp. US:CSC $66.45 $9.07 13.64% $0.920 1.38% 12.26%
InterDigital Inc. US:IDCC $51.26 $6.20 12.10% $0.800 1.56% 10.54%
Seagate Technology PLC US:STX $53.08 $7.21 13.59% $2.160 4.07% 9.52%
Xerox Corp. US:XRX $12.84 $1.46 11.37% $0.280 2.18% 9.19%
Corning Inc. US:GLW $23.24 $2.59 11.15% $0.480 2.07% 9.08%
EMC Corp. US:EMC $25.52 $2.72 10.66% $0.460 1.80% 8.86%
Science Applications International Corp. US:SAIC $55.70 $5.91 10.62% $1.120 2.01% 8.60%
Leidos Holdings Inc. US:LDOS $42.24 $4.89 11.58% $1.280 3.03% 8.55%
Hewlett-Packard Co. US:HPQ $31.57 $3.38 10.70% $0.704 2.23% 8.47%
SanDisk Corp. US:SNDK $64.98 $6.24 9.61% $1.200 1.85% 7.76%
NetApp Inc. US:NTAP $35.38 $3.30 9.33% $0.660 1.87% 7.47%
Insperity Inc. US:NSP $52.80 $4.70 8.90% $0.760 1.44% 7.46%
Lexmark International Inc. Class A US:LXK $43.13 $4.65 10.79% $1.440 3.34% 7.45%
ManTech International Corp. Class A US:MANT $34.01 $3.29 9.66% $0.840 2.47% 7.19%
Marvell Technology Group Ltd. US:MRVL $15.18 $1.28 8.40% $0.240 1.58% 6.82%
Apple Inc. US:AAPL $126.37 $10.26 8.12% $1.880 1.49% 6.63%
L-3 Communications Holdings Inc. US:LLL $126.69 $10.95 8.65% $2.600 2.05% 6.59%
Teradyne Inc. US:TER $19.11 $1.49 7.81% $0.240 1.26% 6.55%
Brocade Communications Systems Inc. US:BRCD $11.79 $0.87 7.42% $0.140 1.19% 6.23%
Western Digital Corp. US:WDC $92.93 $7.78 8.37% $2.000 2.15% 6.22%
Source: FactSet
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And while the markets are falling with some of your holdings, take a deep breath, relax and listen to this!
