Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

3 Tech Companies for Dividend Growth Investors

Accenture
Accenture Plc (NYSE:ACN)
is being hurt by the same factors affecting IBM, lackluster corporate spending has produced disappointing sales growth at this global leader in consulting and technology services. However, just like IBM, Accenture has a remarkably profitable business model which generates plenty of cash flows for shareholders, operating margin increased to more than 14% of sales in the last quarter.

Accenture is a truly global company with more than 200 offices in 53 countries; it serves 89 of the Fortune Global 100 and more than three quarters of the Fortune Global 500 members. The company has been an early mover in the global outsourcing trend and it has built a leadership position in that business over the last years.

Management has a strong commitment to capital distributions, not only when it comes to dividends but also via share buybacks. Accenture has reduced its share count by more than 27% over the last ten years and it has a remaining authorization to repurchase approximately $3.0 billion in stock.

The company has a rock solid balance sheet with $5.9 billion in cash and equivalents and no debt, and the payout ratio is remarkably low at 16.4% of earnings. Accenture has a relatively young history of dividend increases with 8 years of growing dividend in a row, but the company has the fundamental strength to continue raising payments for years to come.

Bottom line
The tech industry has changed over the last years and many companies have built reliable business models generating big and recurrent cash flows for shareholders. When it comes to looking for the best dividend growth stocks for your portfolio, these three technology companies deserve some serious consideration.

The article 3 Tech Companies for Dividend Growth Investors originally appeared on Fool.com and is written by Andres Cardenal.

Andres Cardenal owns shares of IBM and Qualcomm. The Motley Fool recommends Accenture. The Motley Fool owns shares of International Business Machines and Qualcomm.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.