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Top Dividend Tech Stocks…

Top Technology Dividend Stocks

Technology in the form of electronics and computer hardware are now pervasive throughout our daily life. There is widespread interest in this technology as well as the companies that provider this technology. New gadgets and the latest and best versions of our favorite smart phones, laptops, or tablets often draw our attention. Tech is now even integrated into fashion our fashion choices as we’ve seen with the introduction of Google Glass and soon the smart watch (whomever gets there first since rumours have many companies in this sector).

The technology integration is even bigger with corporations. The post offices are seeing the massive change in letter and package delivery.

  • Letters are going down because electronic mail can reach out many but you can also sign many forms online now. I can get many of my statements online as well as the annual financial reports.
  • Packages are up because online buy is up. Consumers and companies are purchasing online and receiving their products by delivery.

Some technology stocks can offer attractive yields for dividend investors. After several years and countless hours of dividend research under my belt; I have seen different technology companies mature and offer dividends back to their investors. And although it has been around for a few decades, the tech sector is not as mature as many other sectors. This means that is has not yet surfaced a dividend aristocrat. IBM is the only outlier, it has an impressive one hundred years of dividends. Only IBM, Microsoft and Intel are on the path of dividend aristocracy. They will fall into this category if they can keep up with their dividend increases for at least another decade. That’s a long to wait. But like they say, patience is a virtue :)

Below is a short summary of a few top technology companies currently paying dividends to shareholders. This list is sorted by market capitalization. These companies listed below are the ones I track and I monitor. I found these stocks using my stock screening method.

Top Technology Stocks

The technology stocks outline below are listed based on the growth for your portfolio. From high growth & low yield to lower growth and higher yield.

Apple

AAPL - Apple - SmallApple is a leading global technology company that manufactures smartphones, personal computers, tablets, wearables, and accessories. It also sells related software, services, accessories, and networking solutions worldwide. Apple ranks among the top largest smartphone companies in the world and is the world’s most valuable company with high brand recall. It caters to a diversified base of customers ranging from small to mid-sized businesses, education enterprises, government departments as well as individual customers. Apple has a huge distribution global network with its products being available in leading geographies around the world. Nearly 55% of its sales come from international markets. Apple’s range of products is known for its excellent quality and is regarded as a status symbol for its owners. iPhone accounts for the majority of Apple sales at 54%, followed by Mac (10%), iPad (8%), wearables, home and accessories (10%) and services (18%). Apple has developed its own operating system which ensures sticky customer relationships. The company spends a substantial amount on marketing and R&D activities to stay ahead of its peers.

Investment Data

Microsoft

MSFT - Microsoft - SmallMicrosoft is one of the largest global technology companies with leading market shares in the computer operating systems and office software. It is the world’s largest provider of software and information services with operations in over 190 countries and an extensive global distribution and marketing network. Its commercial cloud business is the largest in the world. Microsoft also offers an array of services, including cloud-based solutions, software, services, platforms, and content, consulting services, and online advertising. Windows, Xbox, Azure, Bing, Skype and Microsoft Office are some of Microsoft’s top revenue generating products. It operates through Productivity and Business Processes (33% of 2019 revenues), Intelligent Cloud (31%), and More Personal Computing (36%) segments. Microsoft generates most of its software revenue by selling proprietary software. Besides using technology in its own products, the company also generates a substantial royalty stream from licensing. It is also transitioning to a services and subscription business model which provides additional cash flow visibility.

Investment Data

Texas Instruments

Texas Instruments is a global technology company that develops analog and embedded semiconductor chips. It designs and makes semiconductors that are sold to electronics designers and manufacturers worldwide. Texas Instruments has a broad portfolio of differentiated analog and embedded processing products. The company owns and operates 14 manufacturing facilities producing tens of billions of chips each year. It has operations around 30 countries worldwide. Texas Instruments’ reportable segments include Analog (68% of 2018 revenue), Embedded (23%) and other (9%). Analog and Embedded Processing are its core businesses accounting for leading overall industry market share at 18% each. Texas Instruments caters to many diversified markets like industrial (36% of total revenue), personal electronics (23%), automotive (20%), communications (11%), enterprise systems (7%) and other (3%). About 100,000 global customers use Texas Instruments’ chips. The company is expected to benefit from a growing demand for smart and energy-efficient devices worldwide.

Investment Data

Cisco

Cisco Systems is the largest producer and seller of networking equipment such as routers and switches globally. It is the undisputed global leader in telecommunications and networking hardware, and software. It supplies communication software delivering a secure and intelligent platform for digital businesses. Cisco’s business is organized into three geographic segments: the Americas (59% of 2018 revenue), EMEA (25%) and APJC (16%). Its large offering of products and services can be categorized into infrastructure platforms (57% of 2018 revenue), services (26%), applications (10%), security (5%) and other (2%). Cisco owns and operates strong R&D capabilities, a massive patent portfolio, a global sales and marketing network spread across 95 countries serving thousands of customers globally. Cisco maintains a dominant market share position in many of its core offerings. The company has come a long way from just selling basic networking equipment to providing high-value solutions today. It has a globally diversified customer base including businesses of all sizes, public institutions, governments, and telecom service providers.

Investment Data

Do tech stocks fit in your portfolio?

Any of these dividend-paying technology stocks could be a good addition to your portfolio based on your diversification need. Look for new dividend paying stocks to emerge as the tech industry continues to mature and grow.

Short of buying the individual stocks, you could simply by the Nasdaq index or the Nasdaq 100 and also benefit from other profitable non-dividend tech stocks.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.

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