As the stock market goes up, it's getting hard to find real bargains. The technology sector is still one of the sectors with cheap assets. Institutional investors love this field because of the high-margin growth opportunities. I’ve found no reason why stocks from the old technology area are so low priced. You can buy some of the major players for enterprise values of 5-10. That’s damn cheap if you compare this figure with companies like Coca-Cola. There you pay 12 times the enterprise value. One reason could be that the technology is changing very fast and every technology could lose its advantage in only a few years. But a ratio of 3 for a technology market leader?
However, today I would like to proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Because of the huge number of stocks and the higher risk from smaller companies, I observe only shares with a market cap over $10 billion USD. The 20 cheapest technology stocks have a valuation multiple between 5.7 and 11.1 of the expected earnings. Two stocks with a double-digit yield are below the results, and nine are currently recommended to buy. Here are my favorite stocks: Cisco Systems Inc. (CSCO), Corning Inc. (GLW) and International Business Machines Corp. (IBM).
Source: Guru Focus
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Technology Dividend Stocks With Cheap Price Ratios
Posted by D4L | Thursday, May 16, 2013 | ArticleLinks | 0 comments »________________________________________________________________
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