OTEX:CC - 3 Top Tech Stocks That Could Make You Rich by Retirement
If you want to build wealth in the long run for your dream retirement , you should consider investing a part of your savings in dividend stocks from the tech sector. While investing in high-growth tech stocks might involve more risks than defensive low-volatility stocks , some quality tech stocks could multiply your money at a much faster pace.
In this article, I’ll talk about three of the best Canadian tech stocks with attractive dividends that you can buy now to expect to be rich by retirement.
Enghouse Systems stock
Enghouse Systems ( TSX:ENGH ) is a Markham-headquartered enterprise software company with a market cap of $1.6 billion, as its stock currently trades at $29.21 per share with about 40% losses in 2022. A big part of its year-to-date losses could be attributed to the recent tech meltdown. At the current market price, this Canadian tech stock offers an attractive dividend yield of 2.5%, which could help you earn extra passive income by the time you retire.
In recent quarters, the financial growth of Enghouse’s interactive management group has been affected by a market shift towards software-as-a-service cloud offerings. While the demand for its asset management group’s offerings remains strong, the segment saw foreign exchange headwinds in the last quarter due to weakening European currencies.
Despite these temporary challenges, Enghouse’s long-term growth outlook remains strong with its increasing focus on broadening its cloud-hosted solutions portfolio. Given that, you could expect its stock to continue soaring in the long run, making it an attractive tech stock with dividends to buy on the dip now.
Open Text stock
Open Text ( TSX:OTEX ) could be another great dividend tech stock in Canada to add to your retirement portfolio right now after its stock has lost more than 35% of its value on a year-to-date basis. OTEX currently has a market cap of $10.5 billion, which trades at $38.79 per share. At this market price, it offers a 3.4% annual dividend yield.
While Open Text’s information management solutions help organizations optimize their digital supply chains, its content services solutions focus on improving their productivity and efficiency. In the September quarter, the company’s total revenue rose by 2.4% YoY (year over year) to US$852 million, despite facing currency headwinds.
Ongoing supply chain challenges and high inflationary pressures continue to haunt tech companies. Nonetheless, the demand for Open Text’s services is likely to remain largely unaffected by these issues, as businesses across the globe prioritize digitization. Given that, the recent dip in OTEX stock makes it look undervalued to buy now.
BCE stock
The shares of the Canadian telecom giant BCE ( TSX:BCE ) have also seen a sharp correction lately due to the tech sector-wide selloff. It currently has a market cap of $57.8 billion, as its stock trades at $63.37 per share after losing more than 13% of its value in the last seven months. At the current market price, BCE has a very attractive dividend yield of 5.8%.
Despite macroeconomic challenges, BCE’s total revenue rose by 3.2% YoY in the September quarter to $6 billion. Similarly, its adjusted earnings for the quarter jumped by 7.3% from a year ago to $0.88 per share, reflecting underlying strength in its business model. As BCE continues to focus on expanding its 5G network across Canada, you could expect its financial growth to accelerate further in the coming years. That’s why you may consider buying this amazing Canadian tech stock with dividends at a bargain right now.
The post 3 Top Tech Stocks That Could Make You Rich by Retirement appeared first on The Motley Fool Canada .
The Motley Fool has positions in and recommends Enghouse Systems Ltd. The Motley Fool has a disclosure policy . Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
2022