Tech companies generally offer high revenue growth and growth, while offering dynamic prospects of changing the future. But there is a select group companies that offer revenue growth, as well as the ability to pay their investors with excess cash flows in the form of dividends, offering protection to their portfolios.
Buying shares of dividend-paying companies in the tech sector, especially ones that have above-average yields, can help investors boast market-beating returns, with a caveat. Oftentimes, these companies are either in slow industries or may have seen their stock prices fall sharply, increasing the yield for the wrong reason.
Large companies with plenty of international exposure, including names like Windstream Corp. (WIN) , Frontier Communications (FTR) , CenturyLink (CTL) and others have high-dividend yields that investors should be aware of.
TheStreet has compiled a list of seven high-yielding tech stocks.
With a yield of 16.2%, Windstream has by far the highest yield on this list.
But investors should be aware: shares have fallen nearly 60% over the past year, as investors are concerned about the future of the wireline telecom industry.
It has a $750 million market cap, despite generating more than $5 billion in revenue over the past 12 months and $1.78 billion in EBITDA.
Another wireline telecom company, Frontier Communications (FTR) has a yield of 15.09%.
Like Windstream, investors are worried about its business, with shares having declined more than 60% over the past year.
Over the past 12 months, Frontier has generated $9.9 billion in revenue, along with $3.87 billion in EBITDA.
Another wireline telecom company, CenturyLink (CTL) too has a high yield.
At a dividend yield of 9.15%, its dividend is less than its competitors, but it's also seen less of a share price decline in the past 12 months, having fallen 22%.
Revenue over the past 12 months was $17.28 billion, while EBITDA was $6.42 billion.
Vodafone Group (VOD) is one of the world's largest wireless carriers, in markets including Europe, Asia, Africa and Oceania.
It sports a 7.69% yield, as shares have fallen nearly 6% over the past year.
Over the past twelve months, Vodafone has generated $54.49 billion in revenue and $13.17 billion in EBITDA.
Consolidated Communications Holdings (CNSL) has seen its shares fall by more than a quarter of the past 12 months, but its dividend has held up.
Consolidated Communications gives its investors a 7.48% yield, while waiting for the company to grow revenue again.
Over the past 12 months, it's generated $724.27 million in sales, but revenue has fallen 10% year over year. One thing investors can look at in a positive light: it has strong EBITDA margins -- it generated $256.9 million in EBITDA on $420.38 million in gross profit over the past 12 months.
BT Group (BT) has had its struggles over the past year, as the holding company has seen downturns in some of its businesses, including its British Telecommunications unit.
It still gives its investors a 7.02% yield, even as its shares have fallen 28% in the past 12 months.
Over the past twelve months, BT Group has generated $31.3 billion in revenue ad $8.99 billion in EBITDA.
Seagate Technology (STX) makes hard-disk drives and investors have been rewarded over the past 12 months, with a 59% gain plus a 6.6% annual dividend yield.