Saturday, June 18, 2011

Top Yield Technology Stocks: A Contrarian Play

Income investors looking to diversify their portfolio beyond utilities, REITs, and oil income trusts, may want to consider gradually allocating funds towards high yield technology stocks. Tech has dropped fairly significantly during the last month, with the SPDR Morgan Stanley Technology (MTK) ETF dropping over 9.5% during this time frame.

One of the larger firms that pays a decent dividend is the integrated circuit manufacturer Intel Corporation (INTC), yielding 3.4% payable quarterly. The stock trades at 8.9 times forward earnings. Earnings were up 29.4% on a 24.7% increase in revenues for the latest quarter.

Maxim Integrated Products Inc. (MXIM) is another high yield quarterly dividend payer, yielding 3.5%. This maker of linear and mixed-signal integrated circuits has a forward price to earnings ratio of 13.1. Revenues for the latest quarter were 19.2% year over year.

On other high dividend tech stock is Microchip Technology Inc. (MCHP), which makes and markets semiconductor products. The yield is a generous 3.9%, payable quarterly and the forward PE is 13.6. Earnings for the latest quarter were up an amazing 65.7% on a 36.7% rise in revenues.

The above excludes the telecommunication stocks, which although are considered to be part of the tech sector, is basically a different industry from other technology companies. The telecoms also pay very high yields. For a free downloadable list of high yield telecom stocks, which can be sorted and updated, go to

Disclosure: Author did not own any of the above at the time the article was written.


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