The technology sector is generally characterised as full of innovation, competition and growth. It is also known to be highly cyclical and volatile since companies tend to find it difficult to create sustainable competitive advantage. Though, companies that are able to build a strong moat are incredibly profitable and some payout high dividends as a result. Below is my list of huge dividend-paying stocks in the tech industry that continues to add value to my portfolio holdings.
BPS Technology Limited (ASX:BPS)
BPS has an alluring dividend yield of 10.00% and is paying out 37.25% of profits as dividends , and analysts are expecting the payout ratio in three years to hit 61.45%. BPS is among the markets top 25% of dividend payers, which is certainly enticing for interested investors.
RXP Services Limited (ASX:RXP)
RXP has a enticing dividend yield of 6.67% and is paying out 54.16% of profits as dividends . Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 6.67% yield places it amidst the market’s top dividend payers.
Prime Media Group Limited (ASX:PRT)
PRT has a sumptuous dividend yield of 11.33% and distributes 34.37% of its earnings to shareholders as dividends , with the expected payout in three years being 50.02%. PRT’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. Comparing Prime Media Group’s PE ratio against the AU Media industry draws favorable results, with the company’s PE of 3 being below that of its industry (18).
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.