Companies are committed to transforming themselves digitally and this enterprise—our Top Pick for income-oriented investors—is a small but respected go-to player for projects, suggests Benj Gallander, editor of Contra the Heard.

Over the last five years, the stock price for Magic Software (MGIC) has been a bit choppy but the company started paying a semi-annual dividend in late 2012, which always helps to pacify a colicky holding.

Back in August, a dividend of 9.5 cents per share was announced which seemed to spark a downtrend as a big institutional holder began selling a whack of shares in this Israeli software solutions provider.

The most recent set of performance numbers pushed the shares up temporarily but they currently sit not far from their 52-week low of $5.13.

Third quarter numbers released in November were record-breaking in terms of the top line. This is no sleight of hand, as revenues jumped by 13% from last year’s period to $45.3 million.

And they would have been even higher but the continued rise in the mighty greenback devalued company receipts in shekels, yen, and the euro. Revenues for the first nine months of 2015 were up by 5% to a record $128.2 million.

Non-GAAP operating margins have been maintained at over 15% and revenue guidance for the full-year reflects a 7 to 11% growth rate.

The bottom line is solid with non-GAAP operating income in Q3 increasing 3% to $6.6 million and non-GAAP net income increasing 14% to $5.7 million. Cash in the bank sits at a fat $80.9 million, which could indicate a dividend increase is ahead.

The key to the company’s recent operational success, as communicated by CEO Guy Bernstein, has been the continued demand for software and services in all of the global regions Magic serves.

There is certainly no shortage of opinion that says the US dollar is overvalued and it’s reasonable to assume that a drop in the USD will help move the stock off of its lows. The sell target price is $7.84.

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