Motorola Solutions
Motorola Solutions Inc (NYSE:MSI) started paying dividends in the third quarter of 2011 and since then, it has increased the amount once from 22 to 26 cents per share. The P/E ratio is at 21.04, with a forward ratio of 14.67. The stock price has been rallying robustly since August last year. Quarterly revenue has been growing year-on-year stably in 2012 at roughly 6% while its profit margin has recently performed an encouraging improvement from 8% in December 2011 to 13.76% in December 2012. Hence, the company had been consistently surpassing earnings estimates at least during the last 4 consecutive quarters. Motorola Solutions Inc (NYSE:MSI)’s encouraging growth performance is largely attributed to the growth of its core operations shown by a net operating cash flow of $1.07 billion in 2012, the highest in recent years. Given this, a positive free cash flow, and a double-digit expected growth in the next 5 years, dividend-income seekers can be assured of the company’s ability to raise dividends in the future.
e
Source: nasdaq.com
Equifax
Equifax has increased its dividend payment at an average annual rate of 72% during the last 3 years. The company has had a rally in 2012 where its quarterly revenue grew by an average of 10%, year-on-year. Its profit margin had also remained in the double-digits except that for the latest quarter when it went down to 8.30%. Nevertheless, the company had exceeded earnings estimates in all the quarters of 2012. The company’s core business activities are contributing to its sound cash flow statement. The net operating cash flow of $496.3 million and free cash flow of $344.3 million in 2012 were the highest in recent years. With the latest payout ratio based on cash flow of a mere 17.3% and a growth estimate of about 12% in the years ahead, dividend lovers can count on a safe dividend income from Equifax.
Source: nasdaq.com
Oracle
Oracle Corporation (NASDAQ:ORCL) has grown its dividend payment by a huge annual average rate of 43.65% from 2010 to 2012. Its P/E ratio of 16.92 shows an attractive stock price. It has had consistent positive earnings surprises in all the quarters of 2012. The recent positive growth on its quarterly earnings and an impressively improving profitability as shown by its net margin approaching 30% are luring investors’ attention resulting in a remarkable rally on the stock price. In 2012, Oracle Corporation (NASDAQ:ORCL) saw its net operating cash flow grew by 22% at $13.74 billion from $11.21 billion in 2011. I wonder what it will do to its $11.89 billion free cash flow, but I’m sure Oracle will continue to offer attractive payouts in the future. After all earnings are expected to rally at a rate of about 12% in the next 5 years. Investors are already on the move because the stock price is rallying pretty fast.
Source: nasdaq.com
Bottom Line
If you are looking for technology stocks that can offer exciting growth with the stabilizing effect of high-growth dividend payouts, you just saw the best candidates. Positive earnings surprises, increasing revenues, double-digit margins, and attractive levels of cash combine with impressive dividend growth to offer outsized returns.
The article Grab These Dividend-Paying Top Technology Stocks Now! originally appeared on Fool.com and is written by Aubrey Tabuga.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
