The Motley Fool·2025-12-31 19:15Core Viewpoint - The article highlights three technology stocks that are currently available at attractive prices, offering potential for both dividend growth and capital gains as the market continues to recover from previous corrections [1]. Group 1: Microsoft - Microsoft (MSFT) has shown stability and growth potential, with its Cloud segment revenue increasing by 26% year over year in Q1 of its fiscal year [4][6]. - The Intelligent Cloud segment, driven by AI demand, reported a 28% year-over-year revenue increase, with Azure's revenue growing by 40%, indicating a strong growth trajectory [5]. - The stock is currently priced at $485.46, with a market cap of $3.6 trillion and a P/E ratio of 26, reflecting a fair valuation for a company expected to grow earnings at an annualized rate of 16% to 17% [6]. Group 2: Motorola Solutions - Motorola Solutions (MSI) specializes in communications equipment and software for various sectors, having acquired Silvus Technologies for $4.4 billion to enhance its offerings [7][8]. - The company is projected to grow earnings by 9% annually over the next three to five years, with the stock trading at a P/E ratio of 25, which is below its 10-year average of 32 [10]. - The current stock price is $383.38, with a market cap of $64 billion, making it a solid investment opportunity [9]. Group 3: Automatic Data Processing - Automatic Data Processing (ADP) provides essential technology tools for payroll and HR functions, benefiting from a growing global workforce [11][12]. - The company has a strong track record of dividend increases, having raised its dividend for 50 consecutive years, with an average increase of 11.5% annually over the past decade [12]. - ADP's stock is currently priced at $258.51, with a market cap of $105 billion, trading at 23 times its full-year earnings estimates, presenting a favorable buying opportunity [13][14].