The cybersecurity stocks we’ve identified have been stellar long-term performers and also pay a dividend
SmallCapPower | September 25, 2020: Forrester Research estimates that enterprises will spend US$12.6 billion on cloud security tools by 2023, up from $5.6 billion in 2018. As well, many companies have accelerated their digital transformation plans due COVID-19, as many employees have been forced to work from home. Today we have discovered three cybersecurity stocks that have been top, long-term performers and also pay a dividend.
*Returns are based on closing stock prices as of September 24, 2020
Absolute Software Corporation (TSX:ABT) – $14.14
Absolute Software is a cybersecurity company that specializes in endpoint security and data risk-management solutions. During its most recently-reported quarter (Q4), the Company saw its revenue rise 7% while its adjusted EBITDA jumped more than 63%. About 95% of Absolute’s revenue is from its recurring SaaS (software-as-a-service) business. This annual recurring revenue increased 11% to US$108.3 million during the fourth quarter of 2020. ABT stock has a current dividend yield of 2.3%.
- Average annual return over the past five years: 25%
ManTech International Corporation (NASDAQ:MANT) – $68.72
ManTech International provides technology solutions and services for U.S. defense, intelligence community and federal civilian agencies. The Company has been in business for more than 52 years, providing cyber, data collection & analytics, enterprise IT, systems engineering and software application development solutions that support national and homeland security. ManTech’s Q2 2020 earnings per share and revenue topped analyst expectations by 29% and 11%, respectively. It also raised its full-year guidance. MANT stock has a current dividend yield of 1.9%.
- Average annual return over the past five years: 40%
Leidos Holdings Inc. (NYSE:LDOS) – $88.03
Leidos is an information technology, engineering, and science solutions and services leader involved in the defense, intelligence, homeland security, civil, and health markets. Barclays analyst David Strauss upgraded Leidos stock recently from “Equal-Weight” to “Overweight” with a $110 per share target price, expecting the Company to “outgrow” its peers next year, seeing tailwinds in the recent contract wins, reversal of the pandemic headwinds, the Navy NGEN program ramp. JPMorgan analyst Seth Seifman, meanwhile, thinks Leidos shares have bottomed and expects “solid growth ahead” in 2021. LDOS stock has a current dividend yield of 1.5%.
- Average annual return over the past five years: 44%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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