Friday, May 3, 2013

20 Cheapest Technology Dividend Stocks | Innovative Growth At Low Valuation

Technology dividend stocks with low forward P/E ratios originally published at "long-term-investments.blogspot.com". The stock market goes up and its getting hard to find real bargains. The technology sector is still one of the sectors with cheap assets. Institutional investors love this field because of the high margin growth opportunities.

I’ve found no reason why stocks from the old technology area are so low priced. You can buy some of the major players for enterprise values of 5-10. That’s damn cheap if you compare this figure with companies like Coca Cola. There you pay 12 times of the enterprise value. One reason could be that the technology is changing very fast and every technology could lose their advantage in only a few years. But a ratio of 3 for technology market leader?


However, today I like to proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Because of the huge amount of stocks and the higher risk from smaller companies, I observe only shares with a market cap over USD 10 billion.


The 20 cheapest technology stocks have a valuation multiple between 5.7 and 11.1 of the expected earnings. Two stocks with a double-digit yield are below the results and nine are currently recommended to buy.


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