It's not always easy to find technology stocks that pay a dividend.
Technology stocks have a reputation for reinvesting in growth rather than sharing profits with investors. apple Steve Jobs, the co-founder and longtime CEO, famously refused to pay dividends, believing they did not create value for shareholders, and future tech entrepreneurs appear to have taken the lead.
However, there are some signs that this may change. both of them Meta platforms And the alphabet They announced a dividend for the first time this year, something they would have done a long time ago, and this has led to increased pressure on the stocks of other major technology companies such as Amazon And Teslaalthough there are no signs that they will be pushing one anytime soon.
If you are an income investor and like technology stocks, there are some good options available. Keep reading to see three dividend-paying technology stocks to buy today.
1. Microsoft
Microsoft (NASDAQ:MSFT) It won't win any awards for its dividend yield, paying a yield of just 0.7%, but the tech giant is as reliable a dividend payer as you'll find.
Microsoft started paying dividends in 2003, and has raised them by at least 10% almost every year since then. Their competitive advantages should ensure that dividends continue to rise for the foreseeable future, perhaps for decades.
Microsoft is currently the world's most valuable company with a market capitalization of more than $3 trillion, and has a market-leading position in a wide range of categories, including enterprise software, led by the Office suite, and cloud computing where Azure is gaining market share. on Amazon Web Services, and its Windows operating system, which dominates the personal computer market.
The tech giant is also just one of the two companies Johnson & Johnsonreceiving a AAA credit rating from Standard & Poor's, has established itself as a leader in the field of artificial intelligence, and has established a close partnership with OpenAI.
Given these strengths, Microsoft looks like a good bet for long-term earnings growth.
2. Taiwan Semiconductor
If you are looking for profits from the technology sector,… Semiconductor industry It is one of the best places to search, and Taiwan Semiconductor Co., Ltd (NYSE: TSM) It is one of the best options in the industry.
The company is the world's largest contract chip manufacturer, with about 60% market share of total third-party chip supplies, serving customers such as Apple, Nvidia, BroadcomAnd Advanced micro devices. It makes about 90% of the foundry market's advanced chip production.
TSMC is also highly profitable with operating margins of around 40%, and is one of the largest companies in the world with a market capitalization of $800 billion. Currently, offering a dividend yield of 1.4%, the company aims to pay a sustainable and growing dividend.
Like Microsoft, Taiwan Semiconductor also appears positioned to benefit from the rise of generative AI, as many major chip designers, such as Nvidia, rely on it to make their chips.
3. Oracle
Another dividend-paying tech stock worth buying today is inspiration (NYSE: Oracle). Some investors may view the legacy technology company as an industry dinosaur, but that's a mistake. In fact, the stock has a track record of outperforming the market over the past decade.
Oracle may be better known for its database management system and Java programming language, but these days the company is seeing explosive growth from demand for new data centers and cloud infrastructure services, driven by the growth of generative artificial intelligence. The company has also developed a close relationship with Microsoft and Nvidia, which helps fuel its growth.
Last quarter, cloud infrastructure revenue jumped 49% to $1.8 billion, and the company's backlog, measured by remaining performance obligations, is also growing quickly, rising 29% to $80 billion, showing that demand It grows faster than it can serve it.
Oracle currently pays a dividend yield of 1.3%, and the company has a history of strong dividend increases since it began paying them in 2009.
Thanks to the ongoing data center ramp, the growth of generative AI, and partnerships with Microsoft and Nvidia, Oracle looks like a dividend stock that technology investors can buy and hold.
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Susan Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman He has positions at Amazon, Broadcom and Meta platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom and Johnson & Johnson and recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has Disclosure policy.
3 Dividend Tech Stocks to Buy in June Originally published by The Motley Fool