A company pays dividends to its stockholders to share profits with them. Businesses can increase dividend payments if the company operates profitably and cash flows increase.
The top tech companies with the highest dividends include Verizon Communications, AT&T, HP Incorporated, Hewlett-Packard, IBM Corporation, Texas Instruments, Cisco Systems, Qualcomm Incorporated, RTX Corporation, and Lockheed Martin Corporation.
| Company | Dividend Yield | Payout Ratio | Market Cap | Cash on Hand |
| Verizon Communications | 7.95% | 53.52% | $147,023 | $4.803 Billion |
| AT&T | 7.49% | – | $105,753 | $9.528 Billion |
| HP | 4.06% | 45.06% | $25.58 | $1.718 Billion |
| Hewlett Packard | 3.16% | 57.37% | $19.50 | $2.91 Billion |
| IBM Corporation | 4.66% | 146.9% | $133,246 | $16.29 Billion |
| Texas Instruments | 3.47% | 63.36% | $152,365 | $8.948 Billion |
| Cisco Systems | 3.03% | 49.96% | $234,862 | $26.14 Billion |
| Qualcomm Inc. | 3.01% | 39.58% | $127,612 | $8.63 Billion |
| RTX Corporation | 2.98% | 102.96% | $125,572 | $5.456 Billion |
| Lockheed Martin | 2.71% | 43.86% | $109.39 | $3.551 Billion |
| Broadcom Inc. | 2.19% | 54.06% | $376,234 | $12.055 Billion |
| Analog Devices Inc. | 2.14% | 43.74% | $91,777 | $1.149 Billion |
| Oracle Corp. | 1.57% | 41.59% | $182,825 | $12.083 Billion |
| Intel Corp. | 1.37% | – | $146,516 | $24.25 Billion |
| Lam Research Corp. | 1.36% | 23.48% | $94,104 | $5.375 Billion |
| Microsoft Corp. | 0.89% | 26.24% | $2,436,276 | $111.26 Billion |
| Applied Materials | 0.97% | 14.43% | $128,787 | $6.535 Billion |
| Intuit | 0.74% | 37.29% | $147,826 | $3.662 Billion |
| Apple Inc. | 0.56% | 15.80% | $2,800,237 | $62.48 Billion |
Businesses base their dividend payments on their most recent and prior year’s earnings. If the company’s earnings are higher, it will pay out more dividends or at a higher rate, whereas if its earnings are lower, it will pay out dividends at a lower rate.
Here is an in-depth presentation of the tech companies with the highest dividends.
| Key Takeaways: 🔑 Most tech companies don’t give out significant dividends and use their cash gains to fund large-scale research initiatives. 🔑 One of the most crucial considerations when selecting a dividend stock is dividend yield. 🔑 Dividend yield varies with stock price fluctuations because it is based on share price calculations. 🔑 Verizon Communications is currently the tech company with the highest dividend offering. |
Top Tech Companies With Highest Dividends Offering
Companies can maintain investor interest in their business by paying dividends. A dividend increase can be a sign of solid business performance.
Here is a quick rundown of the top tech companies with the highest dividend:
1. Verizon Communications
 | Verizon A multi-national American telecommunications conglomerate in Midtown Manhattan, New York City. | Dividend Yield:7.95% |
Verizon Communications is a leading global telecommunications company with consistent dividend payouts. By diversifying its business, the company has successfully maintained its policy of paying dividends to stockholders even during times of industry upheaval. VZ beats the estimated profit per share, $1.18, which came to $1.22 per share.
This demonstrates that it can continue to grow its clientele to its competitors and has an anticipated higher free cash flow of more than $18 billion, which is $1 billion more than its initial forecast.
- Ticker: VZ
- Industry: Wireless and Internet Services
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 1.94%
- Payout Ratio: 53.52%
- Dividend Growth Streak: 18 years
Here is a five-year side-by-side comparison of Verizon’s stock price and dividend history:
| Verizon’s 5-Year Stock Price History | Verzon’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 26, 2023, Verizon’s stock had a closing price of 34.47, a $2.66 TTM dividend payout, and a dividend yield of 7.95%.
Verizon’s recent lower rise in subscribers is reflected in Verizon’s high yield. The company also had to invest significantly in next-generation network technologies like 5G, which led to increased debt and uncertain returns.
| Verizon’s solid cash flow enables it to pay dividends. “The key elements that enable the company to maintain and grow its dividends are its generation of strong cash flow and commitment to returning value to shareholders.” |
2. AT&T Inc.
 | AT&T AT&T is the third-largest telecommunications company in the world by revenue and the biggest wireless carrier in the US. | Dividend Yield:7.49% |
AT&T, Inc. operates in a largely stable and significant industry that offers highly sought-after telecommunications services. The company’s established reputation and brand recognition are also critical for maintaining a stable financial position, as shown by its record of continually high shareholder dividends.
The company’s shareholders now own 71% of the new Warner Bros., following its successful merger with Discovery Inc. last year, with each share being exchanged for 0.24 shares of the company. With its current dividend yield, an investor could expect to receive $7.49 in dividends annually for every $100 invested in the company stock.
- Ticker: T
- Industry: Telecommunications and Media
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: –17.93%
- Dividend Growth Streak: 1 year
Here is a five-year side-by-side comparison of AT&T’s stock price and dividend history:
| AT&T’s 5-Year Stock Price History | AT&T’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 27, 2023, the company’s current payout is $1.11 in TTM dividends and 7.49% in dividend yield. AT&T’s average dividend payments per share for AT&T over the last 12 months, 36 months, and 60 months have all been -17.93%, 18.89%, and 11.11%, respectively.
AT&T’s 52-week high stock price of AT&T is 22.84, which is 54.1% higher than the price of the current share, and its 52-week low stock price is 13.43, which is 9.4% lower than the current share price.
| AT&T’s steady cash flow allowed it to pay out high dividends.“Due to its consistent cash flow from a wide range of services, including wireless, broadband, and entertainment media, AT&T offers a noticeably high dividend. By 2022, AT&T’s dividend, significantly higher than the industry average, had increased around 7%.” |
3. HP Inc.
 | HP Inc. A global technology company specializing in personal computing and printing solutions. It houses innovative electronics products. | Dividend Yield:4.06% |
HP Inc. specializes in software, solutions, services, personal computing, imaging, and printing-related products. It actively takes part in buyback plans, increasing earnings per share while raising the value of the business for its shareholders.
With shares of HPQ up 2.4% in late trading, the company now expects long-term annual revenue growth of 2% to 4%. In addition to that expansion, HP Inc. anticipates additional annualized rate costs of $1.6 billion, significantly higher than their target range.
- Ticker: HPQ
- Industry: Computers-Minicomputers
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 5.00%
- Payout Ratio: 45.06%
- Dividend Growth Streak: 8 years
Here is a five-year side-by-side comparison of HP Inc.’s stock price and dividend history:
| HP’s 5-Year Stock Price History | HP’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, HP’s TTM dividend payout and dividend yield are $1.05 and 4.06% respectively.
HP Inc. (HPQ) distributes dividends once every three months. The company has been increasing its dividend for 8 years now, indicating that the business is financially stable and will be able to continue to pay dividends in the future.
| HP’s high dividend is a result of its efficient cost management.“Due to its effective cost management, which enables the business to produce free cash flow, HP has one of the highest dividend yields in the technology sector.” |
4. Hewlett Packard Enterprise
 | Hewlett Packard A global tech leader delivering high-end computing, networking, storage, and IT management solutions tailored for the enterprise sector. | Dividend Yield:3.16% |
Hewlett Packard Enterprise’s primary concentration is creating intelligent solutions to advance technology, which stands out for its dividend yield. The company provides various technology and product services, such as networking, security, edge-to-cloud solutions, and data storage.
With a dividend yield of 3.16%, Hewlett Packard offers investors $3.16 in annual dividends for every $100 invested in the company’s stock. A payout ratio of 57.37% means that 57.37% of the company’s profits are distributed as dividends.
- Ticker: HPE
- Industry: Technology
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Payout Ratio: 57.37%
- Dividend Growth Streak: 8 years
Here is a five-year side-by-side comparison of Hewlett Packard’s stock price and dividend history:
| Hewlett’s 5-Year Stock Price History | Hewlett’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Hewlett Packard Enterprise had a $0.48 TTM dividend payout and a dividend yield of 3.16%.
The price of HPE’s stock is $17.6, but an estimate of fair value is $15.84. There may be a slight overvaluation of the stock. However, HPE has been experiencing an impressive daily gain of 5.83% and a 3-month gain of 23.45%. Earnings per share of 0.78 offers evidence of this company’s success.
| Hewlett-Packard’s high dividend is a result of its free cash flows.“HPE has strategically managed its business over the years to produce free cash flows that reward its stockholders with higher dividends.” |
5. International Business Machine Corporation
 | IBMThe International Business Machines Corporation is an American multinational technology company headquartered in Armonk, New York. | Dividend Yield:4.66% |
International Business Machines has dominated the enterprise technology sector for more than a century. In the first half of 2023, International Business Machines Corporation reported having a healthy cash balance. The company distributed $1.5 billion in dividends to shareholders during the second quarter.
The business has spent a lot on share repurchases and acquisitions over the past ten years, such as the $34 billion purchase of Red Hat, an open-source software company, in 2019. Without Red Hat, which accounts for more than 70% of IBM’s annual revenues and is a significant driver of the growth in its Software and Consulting segments, it is difficult to imagine where the company would be today.
- Ticker: IBM
- Industry: Software and Computer Service
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Payout Ratio: 146.9%
- Dividend Growth Streak: 28 years
Here is a five-year side-by-side comparison of IBM’s stock price and dividend history:
| IBM’s 5-Year Stock Price History | IBM’s 5-Year Dividend History |
 |  |
Source: MacroTrends
The graph shows the dividend yield for the past 12 months for IBM, which is helpful for investors to understand IBM’s historical dividend yield. Their average dividend payments per share over the last 12 months, 36 months, 60 months, and 120 months have been 0.46%, 0.61%, 1.52%, and 6.28%, respectively.
IBM currently distributes a $1.62 quarterly dividend per share. As of October 2023, IBM has a $6.64 TTM dividend payout and a 4.66 dividend yield. Their payout ratio has increased due to its growing dividend and declining revenue. The dividend now accounts for nearly 59% of the company’s income.
| IBM’s steady revenue growth offers a high dividend.“Due to IBM’s steady revenue growth, solid recurring revenue base, and strong cash flow generation, the company can invest in its operations and distribute capital to investors dividends.” |
6. Texas Instruments
 | Texas InstrumentsTexas Instruments Incorporated is an American technology company that creates and produces integrated circuits and semiconductors. | Dividend Yield:3.47% |
In terms of sales volume, it is one of the top 10 semiconductor companies globally. TXN concentrates on creating embedded processors and analog chips, which generate more than 80% of its revenue.
The dividend yield for Texas Instruments Incorporated is 3.47%, which means that for every $100 invested in the company’s stock, shareholders would receive $3.47 in dividends each year.
Texas increased its quarterly dividend by 4.8% in September of this year and now pays out a dividend of $1.30 per share.
- Ticker: TXN
- Industry: Technology, Hardware, and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 7.83%
- Payout Ratio: 63.36%
- Dividend Growth Streak: 20 years
Here’s the graphical representation of the dividend yield and stock price history of Texas Instruments for the last 5 years.
| Texas Instrument’s 5-Year Stock Price History | Texas Instrument’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Texas Instruments (TXN) had a TTM dividend payout of $4.96 and a current dividend yield of 3.47%.
Dividend payments per share for Texas Instruments have averaged 7.83% during the last 12 months and 14.87% during the last 60 months.
| TXN’s balance sheet resembles an impressive structure.“Texas Instruments consistently produces healthy, expanding cash flows, achieves high margins and returns on invested capital, and has a fortress-like balance sheet with an A+ rating.” |
7. Cisco Systems Inc.
 | Cisco SystemsCisco is a multinational corporation headquartered in San Jose, California, specializing in digital communications technology. | Dividend Yield:3.03% |
Cisco Systems, Inc. offers a variety of goods and services and is a significant player in the networking and information technology (IT) sectors. The company is a global technology leader and ranked 82nd on the Fortune 100, with over $51 billion in revenue.
The company’s ability to foresee, seize, and take the lead during market transitions has been a critical factor in its success.
- Ticker: CSCO
- Industry: Technology, Hardware and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 2.67%
- Payout Ratio: 49.96%
- Dividend Growth Streak: 12 years
Here’s the graphical representation of the dividend yield and stock price history of Cisco Systems for the last 5 years.
| Cisco System’s 5-Year Stock Price History | Cisco System’s 5-Year Dividend History |
 |  |
Source: MacroTrends
The dividend yield for Cisco Systems, Inc. over the past 5 years is shown visually in the above dividend yield graph. As of October 2023, Cisco pays a $1.56 TTM dividend and a dividend yield of 3.03%.
Dividend payments per share for Cisco Systems, Inc. have averaged 2.67% during the previous 12 months and 4.43% during the previous 60 months. Due to the company’s 12-year dividend growth streak, it is one of the top dividend stocks.
| Cisco succeeds in its dividends despite slow growth.“The company not only started paying a dividend in 2011 but has also increased it yearly, indicating that attitudes have since changed.” |
8. Qualcomm Incorporated
 | Qualcomm Inc.Qualcomm Incorporated is a multinational American company that produces semiconductors, software, and services for wireless technology. | Dividend Yield:3.01% |
Qualcomm Incorporated primarily deals in semiconductors and wireless telecommunications. Code Division Multiple Access (CDMA) technology is used to design, produce, and sell digital wireless telecom products and services.
The company has grown to sell semiconductor products using a manufacturing process that is primarily fabless over the years and has created software or semiconductor parts for automobiles, wristwatches, laptops, smartphones, and other gadgets.
- Ticker: QCOM
- Industry: Technology, Hardware and Wireless Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 9.32%
- Payout Ratio: 39.58%
- Dividend Growth Streak: 18 years
Here’s the graphical representation of the dividend yield and stock price history of Qualcomm Incorporated for the last 5 years.
| Qualcomm’s 5-Year Stock Price History | Qualcomm’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, it has a dividend yield of 3.01% and pays a quarterly dividend of $0.80 per share, which means that for every $100 invested in the company’s stock, shareholders would receive $3.01 in dividends yearly.
Dividend payments per share for Qualcomm have averaged 9.32% during the previous 12 months and 5.53% during the previous 60 months.
| Qualcomm’s stock increases following Apple lawsuits.“Qualcomm stock began to experience massive price increases following the settlement of some lawsuits with Apple. As most investors know, a rising stock price lowers the dividend yield.” |
9. RTX Corporation
 | RTX Corporation RTX is one of the world’s largest aerospace and defense companies. | Dividend Yield:2.98% |
RTX Corporation, formerly known as Raytheon Technologies Corporation, is one of the largest aerospace and defense companies in the world in terms of revenue and market capitalization, as well as one of the biggest suppliers of intelligence services.
The dividend yield for RTX is 2.98%, which means that for every $100 invested in the company’s stock, shareholders would receive $2.98 in dividends each year. With a payout ratio of 102.26%, RTX Corporation distributes 102.26% of its profits as dividends.
- Ticker: RTX
- Industry: Aerospace and Defense
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 7.55%
- Payout Ratio: 102.26%
- Dividend Growth Streak: 3 years
Here’s the graphical representation of the dividend yield and stock price history of RTX Corporation for the last 5 years.
| Raytheon’s 5-Year Stock Price History | Raytheon’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 30, 2023, RTX has a $2.36 TTM dividend payout and a dividend yield of 2.98%. Dividend payments per share for RTX Corporation have fluctuated between 7.55% over the previous 12 months and -4.03% over the last 60 months.
| RTX’s increase in dividends is a sign of financial stability.“For the past 36 months, RTX has raised its dividends. This is an indication that the business is financially stable and will be able to continue to pay dividends in the future.” |
10. Lockheed Martin
 | Lockheed MartinLockheed is one of the biggest businesses in the aerospace, military support, security, and technology sectors. | Dividend Yield:2.71% |
Lockheed Martin Corporation is an American multinational corporation that operates in aerospace, arms, defense, information security, and technology. Its four operating divisions are Aeronautics, Missiles & Fire Control (MFC), Rotary & Missions Systems (RMS), and Space Systems.
The dividend yield for Lockheed Martin Corporation is 2.84%, which means that for every $100 invested in the company’s stock, shareholders would receive $2.84 in dividends each year.
- Ticker: LMT
- Industry: Aerospace and Defense General
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 7.14%
- Payout Ratio: 43.86%
- Dividend Growth Streak: 21 years
Here’s the graphical representation of the dividend yield and stock price history of Lockheed Martin for the last 5 years.
| Lockheed’s 5-Year Stock Price History | Lockheed’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Lockheed Martin has a $12.00 TTM dividend payout and a dividend yield of 2.71%.
Dividend payments per share for the company have averaged 8.45% over the previous 60 months and 7.14% over the past 12 months.
| Lockheed Martin increases the amount of cash flow it produces.“Management has been able to steadily increase the dividend per share by a total of 156% over the past ten years, which is commendable for a company.” |
11. Broadcom Inc.
 | Broadcom Inc.Broadcom specializes in developing and producing infrastructure software and semiconductors in the US. | Dividend Yield:2.19% |
Broadcom Inc. specializes in developing and producing infrastructure software and semiconductors. As of October, the stock’s dividend yield is 2.19%, meaning that for every $100 invested in the company’s stock, shareholders would receive $2.19 in dividends each year.
The company distributes 54.06% of its earnings as dividends to shareholders. Investors have benefited from Broadcom’s significant annual payout increases for many years. In contrast to many dividend stocks, Broadcom’s stock growth has outpaced that of the S&P 500.
- Ticker: AVGO
- Industry: Technology, Hardware, and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 12.20%
- Payout Ratio: 54.06%
- Dividend Growth Streak: 11 years
Here’s the graphical representation of the dividend yield and stock price history of Broadcom for the last 5 years.
| Broadcom’s 5-Year Stock Price History | Broadcom’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Broadcom’s TTM dividend payout is $18.40 and its dividend yield is 2.19%. Dividend payments per share for Broadcom Inc. have averaged 12.20% during the previous 12 months and 21.32% during the previous 60 months.
| Broadcom is one of the best dividend stocks.“Broadcom has seen both market success and stock price growth in the semiconductor sector. It is a tech stock that works in a sector where big dividend payments are uncommon.” |
12. Analog Device Inc.
 | Analog DevicesAnalog is one of the top manufacturers of chips for analog, mixed-signal, and digital signal processing. | Dividend Yield:2.14% |
Analog Devices is an international leader in high-performance semiconductors, involved in integrated circuit design, development, production, and marketing.
The company leads the industry in market share when it comes to converter chips—which are used to convert analog signals into digital signals and vice versa. The industrial and automotive end markets account for over half of its chip sales.
- Ticker: ADI
- Industry: Electronics and Manufacturing
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 12.46%
- Payout Ratio: 43.74%
- Dividend Growth Streak: 18 years
Here’s the graphical representation of the dividend yield and stock price history of Analog Devices for the last 5 years.
| Analog Device’s 5-Year Stock Price History | Analog Device’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Analog Devices has a $3.44 TTM dividend payout and a current dividend yield of 2.14%.
Analog’s five-year annual dividend growth rate has dropped to 11.40% annually from 12.20% (from a three-year time frame).
Its dividend payments per share have averaged 12.46% during the previous 12 months and 12.06% over the past 60 months.
| Analog Devices is listed as a “Dividend Achiever.”“This designation is granted to businesses that have raised their dividend annually for a minimum of the previous 19 years.” |
13. Oracle Corp.
 | Oracle Corp.Oracle provides services and products for corporate IT environments, covering all relevant areas. | Dividend Yield:1.57% |
Oracle Systems Corporation officially changed its name to Oracle Corporation in 1995. It is a computer technology company most recognized for its Java software and offers cloud-engineering services, systems, and database management systems.
Regarding revenue and market capitalization, Oracle ranked as the third-biggest software company globally in 2020.
- Ticker: ORCL
- Industry: Information Technology
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 18.75%
- Payout Ratio: 41.59%
- Dividend Growth Streak: 9 years
Here is a five-year side-by-side comparison of Oracle Corporation’s stock price and dividend history:
| Oracle’s 5-Year Stock Price History | Oracle’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Oracle’s dividend yield is 1.57%, and its TTM dividend payout is $1.60.
Over the last 12 months, Oracle Corporation has paid out 18.75% of its dividends per share, and over the last 60 months, it has paid out 14.87%.
14. Intel Corporation
 | Intel Corp.Intel is an American multinational corporation that ranks among the largest semiconductor chip manufacturers in the world by revenue | Dividend Yield:1.37% |
Intel developed the x86 series of instruction sets found in most personal computers and is listed as the 45th largest US corporation by total revenue in the 2020 Fortune 500. It is a pioneer in producing microprocessors and has the largest market share in the global and mobile PC microprocessor markets.
Even after overcoming numerous class-action and antitrust lawsuits, Intel is still regarded as a leader in the industry and considered one of the tech companies with high dividends.
- Ticker: INTC
- Industry: Semiconductor Manufacturing
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: -32.06%
- Dividend Growth Streak: 0
Here is a five-year side-by-side comparison of Intel Corporation’s stock price and dividend history:
| Intel’s 5-Year Stock Price History | Intel’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Intel’s TTM dividend payout is $0.50, with a current dividend yield of 1.37%. Intel’s dividend payments per share have been, on average, -32.06% over the last 12 months and -3.52% over the last 60 months.
With the company’s dividend yield of 1.37%, investors would receive $1.37 in dividends annually for every $100 invested in the company’s stock.
15. Lam Research Corporation
 | Lam ResearchLam Research was established in 1980 by David K. Lam and provides the semiconductor industry with wafer fabrication equipment and related services. | Dividend Yield:1.36% |
Lam Research Corporation was ranked as the second-biggest manufacturer in the Bay Area as of 2018 after Tesla.
David K. Lam, who had previously worked at Hewlett-Packard, recognized that better plasma etching equipment was required to keep up with the quick miniaturization of semiconductor wafers.
- Ticker: LRCX
- Industry: Technology, Hardware, and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 15.26%
- Payout Ratio: 23.48%
- Dividend Growth Streak: 8 years
Here is a five-year side-by-side comparison of Lam Reserach Corporation’s stock price and dividend history:
| Lam Research’s 5-Year Stock Price History | Lam Research’s 5-Year Dividend History |
 |  |
Source: MacroTrends
Dividend payments per share for Lam Research Corporation have averaged 15.26% during the previous 12 months and 17.53% during the previous 60 months.
According to Lam Research’s October 2023 TTM dividend payout of $8.00 and current dividend yield of 1.36%, investors would receive $1.36 in dividends annually for every $100 invested in the company’s stock.
16. Microsoft Corporation
 | Microsoft Corp.Microsoft is one of the largest broad-based technology providers in the world, dominating the PC software market with more than 80% of the market share for operating systems. | Dividend Yield:0.89% |
Since 1975, Microsoft Corporation has dominated the software market and is still one of the tech giants, despite the competition. The Microsoft 365 application suite is among the most popular productivity software globally.
They purchased the Call of Duty, Candy Crush, and StarCraft franchises to dominate the video game market.
- Ticker: MSFT
- Industry: Software and Computer Services
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 9.84%
- Payout Ratio: 26.24%
- Dividend Growth Streak: 18 years
Here is a five-year side-by-side comparison of Microsoft Corporation’s stock price and dividend history:
| Microsoft’s 5-Year Stock Price History | Microsoft’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Microsoft’s TTM dividend payout was $2.72, and its dividend yield was 0.89%. This implies that for every $100 invested in the company’s stock, investors would receive $0.89 in dividends annually.
The average dividend payments made by Microsoft Corporation per share during the last 12 months have been 9.84%; during the last 60 months, they have been 10.16%.
17. Applied Materials
 | Applied MaterialsThis American company was established by Michael A. McNeilly in 1967, with its headquarters in Santa Clara, California. | Dividend Yield:0.97% |
Applied offers services, software, and manufacturing equipment to the semiconductor, display, and associated industries. Thanks to its broad technological capabilities, it also offers services and solutions that increase device yield, performance, and cost.
- Ticker: AMAT
- Industry: Technology, Hardware and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 16.00%
- Payout Ratio: 14.43%
- Dividend Growth Streak: 6 years
Here is a five-year side-by-side comparison of Applied Materials’ stock price and dividend history:
| Applied’s 5-Year Stock Price History | Applied’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Applied Materials’ TTM dividend payout was $1.28, and its dividend yield was 0.97%. This implies that for every $100 invested in the company’s stock, investors would receive $0.97 in dividend payments annually.
Dividend payments per share for Applied Materials, Inc. have averaged 14.09% over the previous 60 months and 16.00% over the previous 12 months.
| Applied Materials’ increase in dividend is the highest in 5 years.“Applied Materials, Inc. announced a 23.1-percent increase in the quarterly cash dividend from $0.26 to $0.32 per share last March 2023.” |
18. Intuit
 | IntuitIntuit is an American business software company with expertise in financial software. | Dividend Yield:0.74% |
Serving 100 million users globally, Intuit is a global financial technology platform that offers products like Mailchimp, TurboTax, Credit Karma, and QuickBooks.
Intuit acquired Credit Karma and Mailchimp in 2020 and 2021, respectively. Despite making two significant acquisitions over the past few years, Intuit maintains a strong balance sheet.
With Intuit Inc.’s dividend yield of 0.74%, investors would receive $0.74 in dividends annually for every $100 invested in the company’s stock.
- Ticker: INTU
- Industry: Software and Computer Services
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 14.71%
- Payout Ratio: 37.29%
- Dividend Growth Streak: 10 years
Here is a five-year side-by-side comparison of Intuit’s stock price and dividend history:
| Intuit’s 5-Year Stock Price History | Intuit’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Intuit’s TTM dividend payout is $3.60, and its current dividend yield is 0.74%.
The company’s dividend payments per share have averaged 14.71% during the previous 12 months and 14.87% during the past 60 months.
| Not all tech companies like Intuit pay dividends.“Intuit Inc.’s current dividend yield of 0.73% places it in the 70th percentile of all stocks that pay dividends listed in the US. Over the previous five years, its compound average dividend growth rate has been 14.71%.” |
19. Apple Inc.
 | AppleApple Inc. is a California-based American multinational technology company and the largest company in the world by market capitalization as of March 2023. | Dividend Yield:0.56% |
Apple Inc. is considered one of the Big Five American information technology companies, alongside Alphabet, Amazon, Meta Platforms, and Microsoft.
As of June 2022, Apple is the fourth-largest personal computer vendor by unit sales, the largest manufacturing company by revenue, and the second-largest mobile phone manufacturer globally.
- Ticker: AAPL
- Industry: Technology, Hardware, and Equipment
- Dividend Frequency: Quarterly
- Dividend Type: Cash
- Dividend Growth: 4.49%
- Payout Ratio: 15.80%
- Dividend Growth Streak: 12 years
Here is a five-year side-by-side comparison of Apple Inc.’s stock price and dividend history:
| Apple’s 5-Year Stock Price History | Apple’s 5-Year Dividend History |
 |  |
Source: MacroTrends
As of October 2023, Apple has a TTM dividend payout of $0.96 and a current dividend yield of 0.56%. This implies that investors would receive $0.55 in dividends annually for every $100 invested in the company’s stock.
For the last 12 months, Apple Inc. has paid out an average of 4.49% in dividends per share; for the last 60 months, the average has been 7.26%.
| Apple has consistently paid dividends over the years. “While tech stocks don’t always yield dividends, Apple Inc. has proven to be dependable as it has grown. Its dividend payout ratio has remained largely stable over the last few years.” |
Factors Affecting Dividend Rate
Since paying dividends deplete the company’s cash reserve, the dividend policy must consider the business’s financial standing. Several factors influence dividend policy, the most significant being:
- Profitability—The company’s profits also determine the amount of dividends paid to shareholders. A firm’s ability to pay dividends is positively impacted when its financial health improves. There is more space to increase dividend payments to shareholders if the business operates profitably and cash flows increase.
- Dividend Payment History—A business with a track record of providing dividends to its owners typically maintains a consistent dividend amount. Dividends are a significant indicator of a company’s worth since they provide investors with cash flow.
- Funds Availability—A business might pay dividends if its retained earnings sufficiently finance its growth. In addition to having large cash reserves, dividend-paying businesses are typically solid enterprises with promising long-term performance outlooks.
- Growth Plan—A business may increase its dividend if its growth strategy changes and it starts using less of its cash flow. However, if a company intends to reinvest its profits to grow, it may decide to keep them.
- Industry Trends—-Dividend yields can differ significantly between sectors, industries, and fund categories, so it’s crucial to compare and match the dividend trends when assessing dividend yields.
| 📝Note: A company with higher earnings will pay out more dividends or have a higher dividend rate; conversely, a company with lower earnings will have a lower dividend payout rate. |
Conclusion
A company’s dividend history and growth can be influenced by a variety of variables, including profitability, cash flow, and financial stability, as well as its growth prospects and dividend payout policies. It is crucial to remember that aside from shareholder yield, the company’s earnings, revenue, and debt levels are among the metrics investors may consider when assessing a company’s financial standing.
In most cases, businesses that raise their dividends reassure investors that they can continue to grow and be profitable in the long run. However, it may also mean that the business is not working on projects that will allow it to make more money.
FAQs
Which tech companies pay the best dividends?
Some of the best tech companies for dividend investors are Microsoft Corporation, Apple Inc., and Oracle Corporation, which regularly distribute dividends to their shareholders.
What stock currently has the highest dividend?
As of October 2023, Oxford Lane Capital Corp had a dividend yield of 19.02% and paid a monthly dividend of $0.1302 per share.
Does Google pay dividends?
Google has decided not to pay dividends. This is primarily due to its desire to grow into new business ventures.
Does Amazon pay dividends?
Just like Google, Amazon does not distribute dividends because it prioritizes growth more than paying out profits to shareholders.