Mature companies with stable profits are generous in sharing a portion of their profits with shareholders. In addition to promoting goodwill, practice shows the public financial power that invests. However, some big names, especially in the technological space, choose not to pay dividends.
TSX tech superstar Shopify reached a historic milestone in the COVID year. On May 6, 2020, the online shopping platform dislodged Royal Bank of Canada as the most valuable Canadian company. Many believed the tech company would briefly take advantage of the moment and eventually cede the top spot to the 157-year-old bank.
As of July 13, 2021, Shopify still holds the position with its market cap of $ 236.31 billion, compared to $ 182.38 billion for RBC. The ecommerce platform has rewarded investors with massive gains since going public in May 2015. If you then bought $ 5,000 of shares and still own them, your money would be 558,782, $ 35 today.
At $ 1,899.86 per share, it’s a bit pricey for regular investors. However, don’t despair and ignore Shopify. Invest in Evertz Technologies (TSX: ET) and Absolute Software (TSX: ABT)(NASDAQ: ABST) for income and capital growth. Both companies pay dividends, which is rare in expanding technology companies.
End-to-end broadcast solutions
Evertz is trading at just $ 14.51 per share and pays a hefty 4.87% dividend. Market analysts predict a potential rise of 20.61% to $ 17.50. Besides the quarterly dividends, there could be a capital gain in the next 12 months. On the TSX, Shopify is up 32.18%, although Evertz isn’t far behind with a +21.08 so far 2021.
Burlington’s $ 1.11 billion-based company designs, manufactures and markets video and audio infrastructure solutions. Evertz provides complete end-to-end delivery solutions. Their website states that they cover all aspects of broadcast production, such as content creation, content distribution, and content delivery.
Fiscal year 2021 (fiscal year ended April 30, 2021) was not good in terms of revenue, and net profit was down 21.46% and 39.34% compared to fiscal 2020. Business should improve when global economies recover. On July 6, 2021, Evertz’s DreamCatcher training center opened in Munich, Germany.
Absolute Software has been stable since the start of the year with its gain of 17.24%. At $ 17.61 per share, the $ 871.88 million Vancouver-based company pays a modest dividend of 1.79%. Shopify also trades on the New York Stock Exchange, while Absolute is listed on NASDAQ.
In the third quarter of fiscal 2021 (quarter ended March 31, 2021), management announced an 18% increase in total revenue compared to the first quarter of fiscal 2020. However, net income declined by 1% year-on-year. Christy Wyatt, President and CEO of Absolute Software, describes the quarterly results as strong.
Wyatt said this directly reflects the high demand for endpoint resiliency capabilities. Absolute is a leader in Endpoint Resilience solutions. Its CEO adds, “It is an exciting and dynamic time in this market space, and we are well positioned to deliver the security, agility and resilience necessary to properly scale remote and hybrid operating models over the long term. term. “
In May 2021, Absolute acquired NetMotion Software, a leading provider of connectivity and security solutions. The company tweeted that the purchase would bolster its financial profile with scale and diversity of income. It will also serve as the foundation for profitability while continuing to drive growth.
Income and capital growth
Investors in the TSX’s tech sector have cheaper alternatives for income and capital growth in two dividend payers. Scoop Evertz and Absolute now with prices below $ 20.
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Foolish contributor Christophe Liew has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends Shopify. The Motley Fool recommends Absolute Software Corporation and the following options: $ 1,140 long calls in January 2023 on Shopify and $ 1,160 short calls in January 2023 on Shopify.