Five Tech Companies for Value Investors

Joel Anderson |

computer chip, tech, value investing, Technology is not traditionally a sector that excites the more conservative value investors. Classic methods of valuation that are popular among value investors, like Book Value or strong dividends, are largely absent from most tech firms. Apple (AAPL), despite cash reserves that have no doubt cleared $100 billion by now, still hasn't offered a dividend, opting to reinvest its profits into its operations. And since book value is based entirely on the tangible value of a company's property and assets, company's developing intellectual property or other intangible assets often times show up with limited book values. However, there are those tech firms out there that might still appeal to more conservative investors. Each of these five companies offers a dividend, has a Price to Book ratio (the total value of a company's equity divided by its total book value) under 1, and has a Book value per share of over 4.50. While the sector hasn't traditionally offered the value investor much, these companies are closer to the sort of stock that might excite even the most conservative investor.

STMicroelectronics (STM)

Market Cap: $6.71 billion   Dividend Yield: 5.28 percent   Price to Book Ratio: 0.88   Book Value per Share: 8.59 ST is a Swiss semiconductor company designing, developing, and manufacturing a range of semiconductor products for microelectronic applications including computer peripherals, automotive products, and telecommunication systems.

AU Optronics Corp (AUO)

Market Cap: $4.78 billion   Dividend Yield: 2.55 percent   Price to Book Ratio: 0.69   Book Value per Share: 7.88 AU Optronics is a Taiwanese company working in computer peripherals that designs and builds flat pannel display screen, primarily thin film transistor liquid crystal display products.

Corning Incorporated (GLW)

Market Cap: $20.18 billion   Dividend Yield: 2.26 percent   Price to Book Ratio: 0.96   Book Value per Share: 13.91 Corning was founded in 1851 as Corning Glass Works and only changed its name to Corning Incorporated in 1989. The company manufactures ceramics and glassware primarily for use in scientific and industrial purposes.

Tellabs (TLAB)

Market Cap: $1.43 billion   Dividend Yield: 2.04 percent   Price to Book Ratio: 0.87   Book Value per Share: 4.50 Tellabs designs and markets equipment and services to communication providers. Tellabs, based out of Naperville, IL, offers services for wireline and wireless voice, data and video services.

Kyocera Corporation (KYO)

Market Cap: $16.76 billion   Dividend Yield: 1.42 percent   Price to Book Ratio: 0.96   Book Value per Share: 95.42 Kyocera is a Japanese company that provides a variety of products for the global information and communications market and environment and energy market.

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Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 112.18 -1.77 -1.55 35,886,990
AUO AU Optronics Corp American Depositary Shares 3.63 -0.07 -1.89 326,171
GLBS Globus Maritime Limited 0.70 -0.01 -1.41 83,475
GLW Corning Incorporated 23.52 -0.11 -0.47 7,643,236
KYO Kyocera Corporation 47.71 -0.07 -0.15 7,271
STM STMicroelectronics N.V. 7.90 -0.26 -3.19 3,722,414

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