SOURCE: The Bedford Report

The Bedford Report

December 06, 2010 11:25 ET

Tech Stocks Are Becoming Popular Dividend Plays

The Bedford Report Provides Analyst Research on Qualcomm & EarthLink

NEW YORK, NY--(Marketwire - December 6, 2010) -  Dividend paying companies are attracting a lot of attention right now. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. What investors likely weren't counting on was for Information Technology companies to become popular dividend plays. IT stocks have a reputation for being "growth stocks" -- management had been more inclined to retain earnings and capture as much capital gain as possible for investors by reinvesting in the business instead of paying a dividend. However with several IT companies showing an increase in cash flow and drop in capital needs, many firms have begun to raise or institute dividends. In fact a recent report by Bloomberg claimed that companies in the IT industry eclipsed financials in total dividend payouts for the first time in the third quarter. The Bedford Report examines the outlook for dividend paying Tech companies and provides research reports on Qualcomm, Inc. (NASDAQ: QCOM) and EarthLink, Inc. (NASDAQ: ELNK). Access to the full company reports can be found at:

www.bedfordreport.com/2010-12-QCOM

www.bedfordreport.com/2010-12-ELNK

Even with tech heavyweights such as Microsoft, Qualcomm and Cisco making the decision to implement or increase dividend payments, for many tech firms, the idea of returning cash to shareholders remains taboo. Famously, or infamously, Apple has not paid a dividend since 1995. The topic once again came to the forefront after Bernstein Research hardware analyst Toni Sacconaghi sent a letter to Steve Jobs claiming that Apple's $46 billion cash appears "excessive by almost any measure."Apple and Jobs defend their lack of dividend by claiming that it's better for Apple to hold onto the cash hoard for potential acquisitions and "bold" investments. Apple has signaled no plans to change its financial structure, meaning it is not likely to implement a dividend or meaningful share repurchase program at this time. Apple may from time to time buy its shares to prevent dilution from stock-compensation share issuance.

The Bedford Report releases regular market updates on the Technology Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Internet service provider, EarthLink, pays an annual dividend of 64 cents for an impressive 7% yield. For the third quarter EarthLink reported revenue of $145.2 million and non-GAAP profits of 22 cents a share. For the full year ELNK projects $193 million to $201 million in free cash flow and net income of $94 million to $97 million.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer

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