Today I would like to continue my monthly screen serial about high beta stocks from several sectors. Technology dividend stocks are in my focus now. Because of the huge amount of high beta dividend paying technology stocks, I implemented three additional criteria in my screen: A very high market capitalization, an expected five year earnings per share growth as well as a low forward price-to-earnings ratio.
Growth should be over 10 percent for the next half decade and the P/E should below 15. In my view, this ratio represents a very good price for the future growth opportunity but the business model could be much riskier because of the high beta ratio. The betas of the 19 results are between 1.3 and 4. Some stocks like Telecom Italia, Orange or Broadcom have a really bad mid-term performance. Others like TE Connectivity from Swiss or Eaton increased during the same period by over 55 percent or more.
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