Ban Leong Technologies, Powermatic Data Systems, and PNE Industries are technology companies which share a common feature – they’re also great dividend stocks. The tech sector is known to be highly cyclical and volatile since companies tend to find it difficult to create sustainable competitive advantage. However, those that build successful economic moats are exceptionally profitable and some pay strong 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.
Ban Leong Technologies Limited (SGX:B26)
B26 has a juicy dividend yield of 7.45% and pays out 37.06% of its profit as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from S$0.015 to S$0.018. Ban Leong Technologies’s earnings growth over the past 12 months has exceeded the sg electronic industry, with the company reporting an EPS growth of 109.49% while the industry totaled 32.88%. Interested in Ban Leong Technologies? Find out more here.
Powermatic Data Systems Limited (SGX:BCY)
BCY has a great dividend yield of 4.32% and distributes 38.61% of its earnings to shareholders as dividends . Over the past 10 years, BCY has increased its dividends from S$0.05 to S$0.07. They have been dependable too, not missing a single payment in this time. Powermatic Data Systems seems reasonably priced when looking at its PE ratio (12.5). The industry average suggests that Asia Communications companies are more expensive on average 16.8. More on Powermatic Data Systems here.
PNE Industries Ltd (SGX:BDA)
BDA has a great dividend yield of 6.78% and is currently distributing 76.65% of profits to shareholders . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from S$0.008 to S$0.06 over the past 10 years. The company has performed strongly in the last 5 years, growing its earnings by 13.22% in this time. More on PNE Industries here.
For more solid dividend paying companies to add to your portfolio, explore this 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.