Top Technology Dividend Picks TiVo, Camtek, American And Magic Software Shoot At 24-88% December Gains Per ... - Seeking Alpha

Actionable Conclusions (1-10): Brokers Estimated 4.42% To 88.2% Net Gains For Ten Tech Dogs To December 2018

Five of ten top dividend-yielding Techno stocks were among the top ten gainers for the coming year based on analyst 1-year target prices. (They're tinted gray in the chart above). So, this yield-based forecast for Technology, as graded by Wall St. wizards, was 50% accurate.

Ten probable profit-generating trades were uncovered in YCharts for December 2018:

TiVo (TIVO) was projected to net $861.78, based on dividends, plus median target price estimates from five analysts, less broker fees. The Beta number showed this estimate subject to volatility 92% less than the market as a whole.

Camtek (CAMT) netted $349.94 based on a median target price estimate from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to volatility 4% more than the market as a whole.

American Software (AMSWA) was projected to net $250.41, based on dividends, plus a mean target price estimate from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 18% less than the market as a whole.

Magic Software (MGIC) was projected to net $244.67 based on dividends, plus a median target estimate from three brokers, less broker fees. The Beta number showed this estimate subject to volatility 35% less than the market as a whole.

Xerox (XRX) was projected to net $240.99, based on dividends, plus a mean target price estimate from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 15% more than the market as a whole.

Advanced Semiconductor (ASX) was projected to net $128.46, based on dividends, plus a median target estimate from four analysts, less broker fees. The Beta number showed this estimate subject to volatility 46% less than the market as a whole.

International Business Machines (IBM) was projected to net $97.38, based on dividends, plus a mean target price estimate from twenty-four analysts, less broker fees. The Beta number showed this estimate subject to volatility 4% less than the market as a whole.

CSE Global (OTCPK:CSYJY) was projected to net $52.35, based on no target price estimates from analysts, only annual dividend, less broker fee. The Beta number showed this estimate subject to volatility 4% more than the market as a whole.

Asseco Poland (OTCPK:ASOZF) was projected to net $62.77, based on dividends, less broker fees. The Beta number showed this estimate subject to volatility 4% less than the market as a whole.

Asseco Poland (OTCPK:ASOZY) was projected to net $44.29, based on no target price estimates from analysts, just the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 73% less than the market as a whole.

The average net gain in dividend and price was estimated at 23.36% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 25% less than the market as a whole.

The Dividend Dogs Rule

Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these are, in fact, best called, "underdogs".

Top 50 December Technology Sector Stocks By Yield

Actionable Conclusions (11-20) Dog Metrics Tagged 10 Top Dividend Technology Stocks By Yield

Top ten Technology Sector dogs selected 12/22/17 by yield represented six of nineteen constituent industries. Top yielding stock, Camtek (CAMT) [1] was the lone Semiconductor Equipment & Materials representative.

Two information technology industry stocks placed second and seventh on the list: CSE Global (OTCPK:CSYJY) [2] and Digital China Holdings (OTCPK:DCHIY) [7].

Three software-application industry representatives placed third, fourth, and eighth by yield: Asseco Poland (OTCPK:ASOZF) [3], (OTCPK:ASOZY) [4], and TiVo (TIVO) [8].

The lone data storage representative placed fifth, Seagate Technology (STX) [5]. Two communication equipment firms placed sixth, and ninth, VTech Holdings (OTCPK:VTKLF) [6], and Telit Communications (OTCPK:TTCNF) [9].

One electronic components provider placed tenth, Hon Hai Precision (OTC:HNHPF) [10], and completed the top ten December Technology list by yield.

Actionable Conclusions: (21-28) Eight Technology Dogs Showed 1.19% To 85.05% Best Upsides To December, 2018; (29) One Cast A Downside Of -6.81%.

To quantify top stock rankings, analyst mean price target estimates provide a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, analyst mean price target estimates became more tools to dig out bargains.

Actionable Conclusions: Wall St. Analysts Calculated (30) A 6.5% Median Target Price Upside and (31) A 9.94% Average Net Gain December 2018

Technology top thirty stocks were graphed below to show relative strengths by dividend and price as of December 22, 2017, and those projected by analyst mean price target estimates to the same date in 2018.

A hypothetical $1,000 investment in each equity was divided by the current share price to find the number of shares purchased. The shares number was then multiplied by projected annual per share dividend amounts to find the dividend return. Thereafter, analyst mean target price gauged stock price upsides and their net gains including dividends, less broker fees, as of 2018.

Historic prices and actual dividends paid from $10,000 invested as $1k in each of the stocks and the aggregate single share prices of those ten stocks created data points for 2017. Projections based on estimated dividend amounts from $1,000 invested in the ten stocks and aggregate 1-year analyst target share prices from Yahoo Finance created the 2018 data points green for price and blue for dividend.

YChart analysts' median 1-year targets projected a 4.9% lower dividend from $10k invested as $1k in ten dogs in this group while aggregate single share price for those ten was projected to increase by 5% in the coming year. Notice, price is approaching the descending dividend in the coming year to forecast a possible Dow-like oversold condition ahead for the Technology top yield dogs sometime in 2019. The flight to safety, and programmed trading by funds, will soon hit the technology stock sector.

The number of analysts contributing to target price estimates for each stock was noted in the next to the last column on the charts. Three to nine analysts was optimal for a valid projection estimate. Estimates provided by one analyst were generally not applied (n/a).

A beta (risk) ranking for each stock was provided in the far right column of the above chart. A beta of 1 meant the stock's price would move with the market. Less than 1 showed lower than market movement. Higher than 1 showed greater than market movement. A negative beta number indicated the degree of a stock's movement opposite of market direction.

Analysts Cast A 33.12% Disadvantage For 5 Highest Yield, Lowest Priced Technology Sector Stocks To December, 2018

Ten top Technology dogs were culled by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.

As noted above, top ten Technology dogs selected 12/22/17 showing the highest dividend yields represented six of nineteen industries constituting the sector.

Actionable Conclusions: Analysts Projected 5 Lowest-Priced of the Top Ten Highest-Yield Technology Stocks (32) Delivering 9.83% Vs. (33) 14.69% Net Gains by All Ten by December, 2018

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Dividend Technology kennel by yield were predicted by analyst 1-year targets to deliver 33.12% LESS gain than $5,000 invested as $.5k in all ten. The ninth lowest priced Technology top yield dog, TiVo (TIVO), was projected to deliver the best net gain of 88.18%.

The five lowest-priced Technology top yield dogs for December 22 were: Telit Communications (OTCPK:TTCNF); CSE Global (CSTJY); Digital China Holdings (OTCPK:DCHIY); Camtek (CAMT); Hon Hai Precision (OTC:HNHPF), with prices ranging from $2.03 to $6.16.

Five higher-priced Technology dogs for October 13 were: Asseco Poland (OTCPK:ASOZF); (OTCPK:ASOZY); VTech Holdings (OTCPK:VTKLF); TiVo (TIVO); Seagate Technology (STX), whose prices ranged from $11.81 to $42.17.

The distinction between five low-priced dividend dogs and the general field of ten reflected Michael B. O'Higgins' "basic method" for beating the Dow. The scale of projected gains based on analyst targets added a unique element of "market sentiment" gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, however, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.

See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Four of these top 50 Technology pups by yield qualify as valuable catches! Find them among the now 52 Dogs of the Week I found on The Dividend Dog Catcher premium site, or the 52 Dogs of the Week II now accumulating returns. Also the Safari to Sweet Success (Dogs of the Week III) portfolio launched in early September. Click here to subscribe or get more information.

Make investing fun again. See your underdog on Facebook!

At 2 PM every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold does a quick live video summary of four or f five stocks contending for one weekly slot on the Safari To Sweet Success portfolio.

Just go to Facebook/Dividend Dog Catcher at 2 PM trading days and watch, like, comment and share the video, Remember: Root for the Underdog.

Stocks listed above were suggested only as possible reference points for your Healthcare dog stock purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog photo: wonderopolis.com

Four of these top 50 Technology pups by yield qualify as valuable catches! Find them among the now 52 Dogs of the Week I found on The Dividend Dog Catcher premium site, or the 52 Dogs of the Week II now accumulating returns. Also the Safari to Sweet Success (Dogs of the Week III) portfolio launched in early September. Click here to subscribe or get more information. 

Make investing fun again. See your underdog on Facebook!

At 2 PM every NYSE trading day on Facebook/ Dividend Dog Catcher  Fredrik Arnold does a quick live video summary of four or f five stocks contending for one weekly slot on the Safari To Sweet Success portfolio.   

Just go to Facebook/Dividend Dog Catcher at 2 PM trading days and watch, like, comment and share the video, Remember: Root for the Underdog.

Disclosure: I am/we are long CSCO, AWRE, INTC, FLEX.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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