There are a total of 567 technology companies in the U.S. with a market capitalization of more than US$100-million. However, only 57 of these have had a positive total return in 2022. Layering on the additional profitability and forecasted growth requirements, we were surprised to learn that only 12 companies passed our screen, as our parameters are not that stringent.
SciPlay Corp., an online video game publisher headquartered in Las Vegas, topped our screen. SciPlay had its initial public offering via spinoff in 2019, at US$16 a share. Investors could be getting a bargain, as SciPlay recently closed well below its IPO price at $13.81 a share, despite reporting a record US$613-million in LTM sales , which is substantially higher than the US$465.8-million reported in its IPO year.
International Business Machines Corp., an integrated information technology services provider, ranked third on our screen and offers the highest dividend yield at 4.7 per cent. Founded in 1911, IBM may offer resiliency as it has withstood the likes of the Great Depression, the dot-com bubble and the 2008 financial crisis. Additionally, income seekers will be pleased to learn that IBM has raised its dividend each and every year for 27 years.
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