Joel Anderson, contributor to Equities.com, highlights five stocks from the fast-growing tech sector that are surprisingly trading lower than book value.

Technology is not traditionally a sector that excites more conservative value investors. Classic methods of valuation that are popular among value investors, like book value or strong dividends, are largely absent from most tech firms. Apple (AAPL), despite cash reserves that have no doubt cleared $100 billion by now, still hasn’t offered a dividend, opting to reinvest its profits into its operations.

Since book value is based entirely on the tangible value of a company’s property and assets, companies developing intellectual property or other intangible assets often times show up with limited book values.

However, there are those tech firms out there that might still appeal to more conservative investors. Each of these five companies offers a dividend, has a price-to-book ratio (the total value of a company’s equity divided by its total book value) under 1.0, and has a book value per share of over $4.50.

While the tech sector hasn’t traditionally offered the value investor much, these companies are closer to the sort of stock that might excite even the most conservative investor or trader.

STMicroelectronics (STM) is a Swiss semiconductor company designing, developing, and manufacturing a range of semiconductor products for microelectronic applications including computer peripherals, automotive products, and telecommunication systems. It has a market cap of $6.71 billion, a dividend yield of 5.28%, a price-to-book ratio of 0.88, and a book value per share of $8.59.

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AU Optronics Corp. (AUO) is a Taiwanese company working in computer peripherals that designs and builds flat panel display screens, primarily thin film transistor liquid crystal display products. It has a market cap of $4.78 billion, a dividend yield of 2.55%, a price-to-book ratio of 0.69, and a book value per share of $7.88.

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NEXT: 3 More Tech Stocks Suitable for Value Investors

Corning Incorporated (GLW) was founded in 1851 as Corning Glass Works and only changed its name to Corning Incorporated in 1989. The company manufactures ceramics and glassware primarily for use in scientific and industrial purposes. It has a market cap of $20.18 billion, a dividend yield of 2.26%, a price-to-book ratio of 0.96, and a book value per share of $13.91.

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Tellabs (TLAB) designs and markets equipment and services to communication providers. Tellabs, based out of Naperville, IL, offers services for wireline and wireless voice, data, and video services. It has a market cap of $1.43 billion, a dividend yield of 2.04%, a price-to-book ratio of 0.87, and a book value per share of $4.50.

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Kyocera Corporation (KYO) is a Japanese company that provides a variety of products for the global information and communications market and environment and energy market. It has a market cap of $16.76 billion, a dividend yield of 1.42%, a price-to-book ratio of 0.96, and a book value per share of $95.42.

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By Joel Anderson, contributor, Equities.com

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