Summary
- COVID-19 pandemic has driven up the pace of digital transformation across enterprises in various sectors.
- Several government initiatives have been launched to support the uptake of technology solutions and provide aid to smaller firms that may not necessarily have the means to endure the impact of challenging economic conditions.
- There are many FTSE tech stocks that have been regular dividend payers.
The pandemic has played an instrumental role in driving the adoption of advanced technologies to speed up digital transformation across various enterprises in different sectors. Several government initiatives have also been launched to support the uptake of technology solutions and provide aid to smaller firms that may not necessarily have the means to endure the impact of difficult economic conditions. However, the technology sector was one among the few who were least impacted by the COVID-19 pandemic due to the bolstering demand for digital transformation across businesses.
Copyright © 2021 Kalkine Media
Easing restrictions and resuming normalcy will further drive demand for advanced technology solutions in the near future. Here we take a look at ten exiting FTSE technology stocks. These tech stocks are also good dividend payers; here we have selected 10 stocks based on the 5 years average dividend yields and solid fundamentals.
1. PayPoint Plc (LON: PAY)
PayPoint Plc is a UK-based provider of payment solutions for SMEs and retailer partners in the UK, Ireland, and Romania.
For the three months ended 30 June 2021, company’s net revenue from continuing operations grew by 21.3 per cent to £28.1 million (2021: £23.2 million), with positive contributions from the acquisitions of Handepay/Merchant Rentals and RSM 2000. Net revenue mix for the quarter comprised Shopping (50.4 per cent), E-commerce (3.8 per cent), and Payments & Banking (45.8 per cent). The firm announced its final ordinary dividend of 16.6p for the year ended 31 March 2021.
PayPoint’s five-year average dividend yield stood at 8.0 per cent. The company’s market cap stands at £402.68 million as of 28 July.
2. Zytronic Plc (LON: ZYT)
Zytronic Plc is a leading developer and provider of touch technology products and sensors used to optimise the performance across electronic display applications.
For the six months ended 31 March 2021, the company reported a decline in revenues to £4.8 million (2020: £7.4m) due to the COVID-19 pandemic and an EBITDA of £0.2 million for the period (2020: £1.0m). Zytronic announced its final ordinary dividend of 15.2p for FY2020. The company’s total dividend paid out in FY 2020 thus stands at £2.44 million.
Zytronic’s five-year average dividend yield stood at 6.5 per cent. The company’s market cap stands at £17.13 million as of 28 July.
3. Micro Focus International Plc (LON: MCRO)
Micro Focus International Plc is a UK-based multinational IT and software company. The firm offers software solutions and consultancy services and is listed on the London Stock Exchange and a constituent of the FTSE 250 Index.
For the H1 2021 ended 30 April 2021, revenues of Micro Focus International stood at $1.4 billion, while its adjusted EBITDA margin was 36.4 per cent for the H1 2021 compared to 37.7 per cent in H1 2020, supported by revenues generated from licence and cost savings generated from the simplification of back-operations.
On 1 July 2021, Micro Focus announced an interim dividend of 6.42 pence per ordinary share for the half-year ended 30 April 2021.
Micro Focus International’s five-year average dividend yield stood at 4.5 per cent. The company’s market cap stands at £1,338.19 million as of 28 July.
4. Vianet Group Plc (LON: VNET)
Vianet Group is a global actionable data and business insight provider that leverages the Internet of Things (IoT) platform. It was admitted on AIM in 2006 and currently offers services to more than 300 customers globally from more than 250,000 connected machines daily. It features among the largest business-to-business (B2B) connected solution providers in Europe.
For the year ended 31 March 2021, Vianet’s revenues declined by 48 per cent to £8.37 million (FY2020: £16.28m), reflecting the impact of COVID-19. However, the company expects a positive group performance in the first quarter leading to the recovery of trading to normal during H2 2022.
Vianet Group announced a dividend of 1.70 pence per ordinary share for FY20.
Vianet Group’s five-year average dividend yield stood at 4.1 per cent. The company’s market cap stands at £30.55 million as of 28 July.
5. Strix Group Plc (LON: KETL)
Strix Group is an international technology company engaged in designing, manufacturing, and supplying safety controls for kettles and other products. Strix trades on the AIM Market of the London Stock Exchange.
For the H1 2021 period ended 30 June 2021, the group registered positive momentum and is expected to deliver revenue growth of 50 per cent, compared to the previous year due. The company anticipates an upbeat 2021 outlook on the back of product launches from LAICA. Additionally, its HaloPure technology is gaining widespread recognition, and the company secured two contracts with the Chinese government.
Strix Group’s five-year average dividend yield stood at 3.3 per cent. The company’s market cap stands at £660.79 million as of 28 July.
6. Quartix Technologies Plc (LON: QTX)
Quartix Technologies is a major company engaged in supplying vehicle tracking systems and services to the insurance and fleet sectors.
For H1 2021 ended 30 June 2021, Quartix Technologies’ revenue decreased by 5 per cent to £12.5 million from £13.1 million in 2020. Revenues in H1 2021 were supported by strong growth in new fleet telematics installations. As a result, adjusted EBITDA was £2.7 million for H1 2021 as compared to £4.6m in H1 2020. New vehicle tracking unit subscriptions grew by 31 per cent to 25,493 in H1 2021 from 19,454 in H1 2020.
Quartix Technologies’ announced a dividend of 1.50 pence per share for the half-year ended 30 June 2021, with a final dividend pay out totalling £8.5 million in April 2021.
Quartix Technologies’ five-year average dividend yield stood at 3.0 per cent. The company’s market cap stands at £235.90 million as of 28 July.
7. Netcall Plc (LON: NET)
Netcall Plc is a provider of customer engagement and intelligent automation software. In May 2021, the company announced the launch of a new Liberty platform solution, Tenant Hub, customised to address housing sector needs.
For the year ended 30 June 2021, the company announced year-on-year revenue growth of 8 per cent to £27.2 million (FY20: £25.1m) and adjusted EBITDA grew by 20 per cent to £5.3 million (FY20: £4.4 million). The company’s annual contract value for cloud services grew by 25 per cent to £9.4 million (FY20: £7.5 million), and currently constitutes 50 per cent of total ACV, which increased 10 per cent to £18.5 million (FY20: £16.8 million).
The firm announced its final ordinary dividend of 5 pence for the year ended 30 June 2021.
Netcall’s five-year average dividend yield stood at 2.9 per cent. The company’s market cap stands at £111.77 million as of 28 July.
8. FDM Group (Holdings) Plc (LON: FDM)
Based in London, FDM Group is an international provider of professional services.
For the half ended on 30 June 2021, company’s revenues reached £131.3 million from £140.5 million in H1 2020, while profit before tax reached £20.5 million in H1 2021 from £21.2 million in H1 2020. Despite a dull year due to the pandemic, revenues were supported by a 5 per cent increase in mounties assigned to clients at 3,841 (2020: 3,656).
On 27 July 2021, the firm announced its interim dividend of 15.0 pence per ordinary share compared to 18.5 pence in 2020, which will be payable to shareholders on 3 September 2021.
FDM Group’s five-year average dividend yield stood at 2.9 per cent. The company’s market cap stands at £1,222.95 million as of 28 July.
9. Solid State Plc (LON: SOLI)
Solid State Plc is a specialist value-added component supplier and design-in manufacturer of power, computing, and communications products.
For the year ended 31 March 2021, the company’s revenues declined by 1.3 per cent to reach £66.3 million from £67.4 million in 2020, reflecting diversified COVID-19 pandemic and Brexit challenges. In FY20/21, the company completed the acquisition of Willow Technologies and Active Silicon and enhanced international sales capabilities and resources in the US and Europe. In May 2021, Solid State secured a three-year $4.56 million contract renewal with a global defence technology customer.
The firm announced its full-year dividends of 16.0 pence per ordinary share to be paid on 24 September 2021.
Solid State’s five-year average dividend yield stood at 2.7 per cent. The company’s market cap stands at £79.12 million as of 28 July.
10. RM Plc (LON: RM.)
RM is a supplier of technology and resources to the education sector. For H1 2021 (ended 31 May 2021), RM’s revenues grew by 21 per cent to £96.1 million in H1 2021 from £79.3 million in H1 2020, driven by strong trading growth of 190 per cent in profit before tax due to strong UK curriculum resources sales in Q2, as schools increased spending on supporting outdoor teaching, student well-being, physical education, and managing COVID-19 transmission risks.
On 31 May 2021, the firm announced its interim dividends of 1.7 pence per ordinary share.
RM’s five-year average dividend yield stood at 2.6 per cent. The company’s market cap stands at £197.95 million as of 28 July.
Comment