Top Performing Dividend Payers in Tech with the Most Upside Potential (ATNI, LDR, LOGI)
It is not unusual for stocks on a tear to the overrun their mean price targets, which is a signal of how far analysts on average expect the share price to climb. Many of the top performing dividend payers in the technology sector over the past six months, such as Badger Meter (NYSE: BMI) and Nam Tai Electronics (NYSE: NTE), have done just that. Others are at or near their mean price targets.
But analysts believe that Atlantic Tele-Network (NASDAQ: ATNI), Landauer (NYSE: LDR) and Logitech International (NASDAQ: LOGI) still have some room to run, despite rising more than 10 percent in the past six months.
This Massachusetts-based wireless and wire line telecommunications provider has a market capitalization of about $660 million and a dividend yield near 2.2 percent. The return on equity is a higher than that of Verizon Communications (NYSE: VZ) and the price-to-earnings (P/E) ratio is less than the industry average. But the long-term EPS growth forecast is only about three percent. Three out of five analysts surveyed by Thomson/First Call who follow the stock recommend buying shares; none recommend selling. The mean price target is almost 13 percent higher than the current share price, which pulled back about five percent after reaching a 52-week high last week following a more than eight percent dividend hike. Over the past six months, the stock has underperformed larger competitor Verizon but outperformed the Nasdaq.
Landauer provides environmental radiation measurement and monitoring, outsourced medical physics services and high-quality medical consumable accessories. It has a market cap of about $560 million and a dividend yield near 3.7 percent. Its P/E ratio is higher than the industry average, but so is its operating margin. The long-term earnings per share (EPS) growth forecast is about 12 percent, and the return on equity is almost 28 percent. But only one of the five analysts surveyed recommend buying shares. Their mean price target is about 13 percent higher than the current share price, as well as higher than the 52-week high. Landauer is up about 14 percent year to date and reached a 52-week high last Friday. It has outperformed Advanced Photonix (NYSE: API) and the broader markets over the past six months.
This maker of peripherals for personal computers is headquartered in Morges, Switzerland, sports a market cap of about $1.3 billion and declared a one-time dividend earlier this month. The P/E ratio is lower than that of competitor Koninklijke Philips Electronics (NYSE: PHG). The long-term EPS growth forecast is more than 17 percent, but note that the short interest is about 28 percent of the float. Of the four analysts polled, two recommend buying shares. The mean price target is more than 13 percent higher than the current share price. The stock has pulled back more than six percent in the past week but still is more than 12 percent higher in the past six months. In that time, the stock's performance has been in line with Koninklijke Philips, but it has outperformed the Nasdaq.
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