Tuesday, September 20, 2011

Two high tech companies with steady dividends

These two high tech stocks which you may be interested. Both Microsoft and Intel are DOW components and these two companies have been paying dividends and continue to increase their dividends over the years.

Microsoft current yields is about 2.4% and P/E is 10. Although the stock has been trading in a tight range over the last 10 years (closed at $27.21 as of 9/20), the steady growth of dividend made the stock stand out comparing with IBM and HPQ. IBM pays 1.7%  dividend and P/E is 14, and HPQ pays 2.0% with P/E of 5.38.

Intel is one of the leader in the Semiconductor industry. The chipmaker may not have future surge consumer demand for its CPUs like it was back in the 80s and 90s. The near term demand could still be rough but it continues to lead the CPU market over AMD in PCs and laptops.  Currently, Intel is paying 3.8% dividend with P/E of 10 and the new expected Microsoft Windows 8 release may spark some attention to this giant chipmaker. Intel closed at $21.53 on 9/20.

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