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. As a long term investor, I favour these tech stocks with great dividend payments that continues to add value to my portfolio.
Computershare Limited (ASX:CPU)
CPU has a nice dividend yield of 3.19% and pays out 56.66% of its profit as dividends . In the case of CPU, they have increased their dividend per share from $0.18 to $0.38 so in the past 10 years. They have been consistent too, not missing a payment during this 10 year period.
Event Hospitality & Entertainment Limited (ASX:EVT)
EVT has a good dividend yield of 3.90% and the company has a payout ratio of 73.25% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.28 to $0.51. It should comfort existing and potential future shareholders to know that EVT hasn’t missed a payment during this time.
Southern Cross Media Group Limited (ASX:SXL)
SXL has a juicy dividend yield of 7.37% and is paying out 54.90% of profits as dividends , with analysts expecting this ratio to be 72.56% in the next three years. The company’s 7.37% dividend is both above the low risk savings rate and among the markets top payers. Southern Cross Media Group’s earnings per share growth of 40.55% outpaced the au media industry’s -10.79% average growth rate over the last year.
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.