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Stockpickr: The Top 10 High-Yield Tech Stocks

Stock quotes in this article: UNTD , NTE , MCHP  

Tech stocks have historically not offered dividends. Oftentimes they use their cash to buy other companies in their sector, buy back shares or put it into research to create more products. In fact, offering dividends has often been seen as a sign of weakness in tech companies.

However, that's begun to change, and we are seeing more tech companies handing out cash on a regular basis as their profits and growth have stabilized. At Stockpickr we keep track of the Top 10 Yielding Tech Stocks, updating this portfolio on a regular basis.

All 10 stocks are specifically selected not only because they offer good dividends but also because the payout ratio is less than 1 (they pay less in dividends than they earn) and the prospects for growth are strong.

United Online(UNTD Quote) pays out a 6% yield and is grossly undervalued. The company has a $900 million market cap but has $154 million in cash in the bank with no debt. Its EBITDA (earnings before interest, taxes, depreciation and amortization), or cash flow, was $137 million over the last 12 months. So the company is trading at only five times cash flows, making it a buyout target. ...

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