Cantech Letter, an online magazine that focuses on Canadian technology stocks, recently posted a list of 12 Canadian tech stocks that pay a dividend.
They include three companies --
Absolute Software Corp. (
TSX: T.ABT,
Stock Forum),
Open Text Corp. (
TSX: T.OTC,
Stock Forum) and
Mediagrif Interactive Technologies Inc. (
TSX: T.MDF,
Stock Forum) -- that are also mentioned in a research report by analysts Pardeep Sangha and Neil Bakshi of PI Financial in Vancouver.
Here is a summary of what Sangha and Bakshi had to say about those companies:
Abolute Software is a Vancouver-based software company that provides computer security and asset management services. The aim is to offer protection against theft and recovery of lost or stolen computing devices such as laptops, desktops and mobile devices.
In April 2013, Absolute said it had struck a deal to provide its persistence services as built-in features for Samsung’s line of GALAXY mobile phones and tablets. In May, the company said it is first to market with Mobile Theft management (MTM) for Apple Inc.’s (
NASDAQ: AAPL,
Stock Forum) iOS devices. “We believe these product launches validate Absolute’s market leadership position," Sangha and Bakshi said in the report.
PI has a neutral rating on the stock with a target price of $7.
The stock traded at $7.02 this week.
Mediagrif Interactive operates e-business vertical networks in several industries, including electronic components, computer equipment, telecommunications, and medical equipment.
Mediagrif recently strengthened its Quebec presence with the acquisition of two Quebecor (
TSX: T.QBR.A,
Stock Forum) and (
TSX: T.QBR.B,
Stock Forum) media assets for a combined $65 million. They include Jobboom, the largest online recruitment site in Quebec, and Reseau Contact, Quebec’s most popular dating site, with more than a million members.
PI has a buy rating on the stock with a target of $24.50.
Mediagrif was trading at $20 this week.
Open Text Corp. is a provider of software and services that help organizations automate processes, meet compliance requirements and manage all of their business content.
“Despite improvements in license revenue and the introduction of a dividend, we are still cautious on this investment opportunity due to the continued slow economic recovery,’’ said Sangha and Bakshi in a report.
PI has a neutral rating on Open Text with a target of $65.
The stock traded at $72.59 this week.
Meanwhile here are the other dividend-paying companies on the Cantech Letter list, including commentary by editor Nick Waddell.
Calian Technologies Ltd. (
TSX: T.CTY,
Stock Forum)
A Consistent profit maker, the company sells technology solutions to governments, and has 2,500 people in offices across Canada.
In the second quarter, Calian’s profit rose by 13% year-over-year to $3.7 million. Revenue was up 4% year-over-year at $61.6 million from $59.4 million.
The stock traded this week at $18.25.
Evertz Technologies Ltd.(TSX: T.ET,
Stock Forum)
Evertz emerged from the Canadian broadcasting technology sector. The company’s fiscal 2012 revenue of $293.4 million came from a product line that includes timecode equipment, closed captioning technology and multi-viewers. Evertz’s products have been used in the production of Star Wars III, Rocky 6, CSI, Oprah, and the 2008 Olympics.
The stock traded at $14.92 this week.
Aastra Technologies Ltd. (
TSX: T.AAH,
Stock Forum)
Concord, Ontario-based Aastra, which markets a range of telephony solutions for large businesses, has seen its stock price jump to nearly $26 recently from under $16 in November 2013. Aastra is consistently profitable and routinely delivers its success back to shareholders in the form of share buybacks and ever-increasing dividends.
The stock traded this week at $25.76.
Wi-Lan Inc. (
TSX: T.WIN,
Stock Forum)
Ottawa’s Wi-LAN Inc. has become one of the world’s top patent carriers, on a par that rivals Apple, Google and Samsung. The company is not a stranger to patent infringement claims, having launched actions against dozens of multinationals, including Apple, Hewlett-Packard, Intel, Sony and Toshiba. Calculating the number of patents the company holds has become something of a moving target, because they keep adding more.
The stock traded this week at $3.70
C-Com Satellite (
TSX: V.CMI,
Stock Forum)
The only TSX Venture-listed company on the list, Ottawa’s C-Com Satellite provides satellite-based Internet access equipment. It traded at $1.75 this week.
Computer Modelling Group (
TSX: T.CMG,
Stock Forum).
Computer Modelling Group is an Alberta technology success story. In 1978, the company was a small Calgary-based research facility, and was actually a non-profit entity for the first 17 years of its existence. When CMG decided to go for a profit, they were pretty good at it and continue to be; the company has more than doubled its revenue from $23.7 million in fiscal 2007 to around $61 million in 2012.
The company has five offices globally and is more likely to make a sale of its leading edge reservoir simulation software outside of Canada than here at home. The scope of CMG’s market has grown because reservoir simulation software has become an important tool for oil and gas companies. Computer models allow them to better predict the expected production, allowing for better financial decisions.
The stock traded at $25.69 this week.
Constellation Software Group Ltd. (
TSX: T.CSU,
Stock Forum)
Constellation makes software for the public and private sector, including housing authorities, transportation agencies and large home builders. Having acquired nearly two-dozen companies since the beginning of 2011, Constellation has grown its revenue from $243 million in fiscal 2007 to over $773 million in 2011. Cantor Fitzgerald analyst Tom Liston says Constellation’s management is among the very best allocators of capital in the technology sector.
The stock traded at $149.86 this week.
Macdonald Dettwiler and Associates Ltd. (
TSX: T.MDA,
Stock Forum) is Canadian technology icon, having made a huge contribution to Canadarm, a robotic space arm developed in the 1970s to repair and service NASA space shuttles. More recently the company has been forced to reinvent itself.
However, the MDA is now a prime contractor for a spectrometer geology instrument called APXS, which allows NASA’s Curiosity rover to calculate the chemical composition of the rocks and soil on Mars.
MDA traded at $$76.81 this week.
Enghouse Systems Inc. (
TSX: T.ESL,
Stock Forum)
Markham, Ont.-based Enghouse provides software solutions for call centres, managing customer interactions for banks, utilities, and insurance companies. It is organized around two business segments: the Interactive Management Group and Asset Management Group. The company has seen its revenue increase to over $136 million in 2012 from $55 million in 2012.
It traded at $26.18 this week.