5 Communication Services Stocks that Pay Dividends

4. Deluxe Corporation (NYSE: DLX)

Number of Hedge Fund Holders: 12
Dividend Yield: 2.9%

Deluxe Corporation (NYSE: DLX), a tech-enabling solutions provider for small businesses and financial institutions, ranks 4th on our list of communication services stocks that pay dividends. The company operates mainly in the US, Australia, Canada, South America, and Europe through its Payments, Cloud Solutions, Promotional Solutions, and Checks segments.

This June, it was announced that Deluxe Corporation (NYSE: DLX) would be collaborating with Microsoft Corporation (NASDAQ: MSFT) over the former’s small business human resources and payroll solutions, to bring it under the latter’s Dynamics 365 Business Central umbrella. The collaboration would help finance and accounting solutions and their enhancement to the benefit of smaller businesses like Deluxe Corporation (NYSE: DLX).

In the second quarter of 2021, Deluxe Corporation (NYSE: DLX) had an EPS of $1.25, beating estimates by $0.37. The company’s revenue was $478.20 million, up 16.52% year over year and beating estimates by $56.6 million. Deluxe Corporation (NYSE: DLX) has gained 8.97% in the past 6 months and 45.49% year to date.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Deluxe Corporation (NYSE: DLX) worth roughly $55.8 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $54 million.