My Top 14 Dividend Stock Picks In The Technology Sector

...Historically, many technology companies, especially younger companies within the sector, do not pay dividends. These companies typically prefer to invest profits back into their company to improve innovation, rather than reward shareholders with dividends. Many investors invest in non-dividend paying technology stocks in hopes that the share price will increase significantly. For dividend investors, however, there are plenty of great options in the technology sector.

Written by Timothy J. McIntosh

These are...my 14 top picks in the sector that are expected to have attractive returns along with great dividend yields and growth:

I. Intel Corporation (NYSE: INTC) currently offers a dividend yield close to 3%, which is above its peers in the semiconductor industry. The company has been paying dividends since 1992, and has increased its dividend during most years.

Intel has proven to be a strong choice for investors, but has struggled to grow [in] share price since its rally in 2013. However, the company recently announced its plan to purchase a 15% stake in mapping company... to increase its presence in the self driving car industry....

2. Verizon Communications Inc. (NYSE: VZ ) has historical been a great pick for dividend investors, with a dividend yield over 4%. On average, similar companies offer a dividend yield of about 3.4%. The stock has been trading since 2000, but previously traded as Bell Atlantic. Since 1984, the company has been paying a quarterly dividend. It has increased its dividend every year for over 10 years, since 2007.

The company announced last year that it plans to acquire Yahoo, which raised a lot of questions on whether the deal will help the company. Despite some volatility in 2016, the stock jumped nearly 17%....

3. International Business Machines Corp. (NYSE: IBM) offers a dividend yield around 3.3%, compared to the average dividend yield of about 2.8% in the computer systems industry. IBM has been paying dividends for over 100 years, since 1913 and has been raising its dividend ever year consecutively since 2000.

Despite a few bumps in the road last year related to the company's acquisitions, the stock soared compared to its sector last year. Dividend investors also saw an 8% from $1.30 to $1.40 to IBM's quarterly dividend last April....

4. Infosys Ltd ADR (NYSE: INFY) is an India-based ADR that currently offers a dividend yield of about 1.9% (compared to an average dividend yield of 1% in the business services industry). Since the company trades on the New York Stock Exchange as an ADR, its semi-annual dividends are irregular and unpredictable. However, on an annualized basis, the company has been raising its dividend every year since 2013.

Although its share price declined last year, the company will likely benefit from a strong economy in India...

5. AT&T Inc. (NYSE: T )  currently offers a dividend yield over 4.5%, which is a great opportunity for dividend investors. AT&T, which was previously SBC Communications Inc. and Southwestern Bell Corporation, has been paying dividends since 1984.

In 2016, the company announced the biggest proposed M&A deal of the year. The company reported in October that it will acquire Time Warner (NYSE: TWX) for $85 billion. Although it is still unclear if this deal will go through, its success will be significant for AT&T...

6. Garmin Ltd. (NASDAQ:GRMN ) offers investors a dividend yield of approximately 4%, compared to the industry average of about 1%. The company has been paying a dividend since 2003 and has maintain[ed] its current quarterly dividend of $0.51 since 2015.

In September, Garmin announced that it completed its acquisition of its Japan-based consumer products company Iiyonet for undisclosed terms....

7. Cisco Systems, Inc. (NYSE: CSCO) currently has a dividend yield of about 3.5%, compared to the industry average of just 1.15%. The company has been paying its shareholders a dividend since 2011, and has boosted its payout every year since the inception of its dividend. Last year, Cisco increased its dividend by 24%....

8. Seagate Technology PLC (NASDAQ:STX) has a dividend yield of over 6%, which is will above the average dividend yield in the data storage device industry. The company had been increasing its quarterly dividend every year since 2011, but maintained its current $0.63 dividend for the fifth consecutive quarter. This is likely due to falling revenue, due to lower demand in the hardware industry.

Despite its lagging revenues, the stock's share price is positive over the last year....

9. KLA-Tencor Corp (NASDAQ:KLAC ) offers a dividend yield of approximately 2.7%, which is well above the average dividend yield of 1.5% in the semiconductor equipment industry. KLA has been offering shareholders a dividend since 2005 and has been raising its dividend every year since 2010. The company recently announced a 4% increase to its quarterly dividend from $0.52 to $0.54.

The stock had strong performance in 2016, and many analysts are optimistic on the company going forward...

10. Oracle Corporation (NYSE: ORCL) currently yields at around 1.55%, which is well above the average yield in the application software industry, which is less than 1%. The company has been paying dividends since 2009 and has been increasing dividends consecutively since 2012.

Over the last year, Oracle has come out in the positive, but has seen a lot of volatility due to the election. Oracle's most recent earnings release sent the stock plummeting, as the company missed estimates and saw lower revenues....

11. Microsoft Corporation (NASDAQ: MSFT ) has a current dividend yield of about 2.5%, compared to the industry average of just 0.90%. The tech giant has been paying dividends since 2003 and has been increasing its payout every year since 2004.

Microsoft had an eventful year in 2016, with its $26 billion acquisition of LinkedIn being a highlight....

12. Accenture Plc (NYSE: ACN ) offers a dividend yield of approximately 2%, which is similar to the average yield of its peers. Since 2005, Accenture has been offering its shareholders a dividend. It has been increasing its payout each year since 2010.

The company recently reported disappointing financial results for its first quarter, which cause a dip in its share price....

13. QUALCOMM, Inc. (NASDAQ: QCOM) has a dividend yield of about 3.2%, compared to the average yield of its peers of 2.5%. Since 2003, the company has been paying a dividend and increasing its payout every year.

In 2016, the company's financials struggled, but its share price was offset by share repurchases...

14. Apple Inc. (NASDAQ: AAPL) has a dividend yield around 2%, which is in-line with the average yield in the personal computer industry. The company reinitiated its quarterly dividend in 2012, after not paying a dividend since 1993.

Much of the attention on Apple tends to be on its product launches, which occur in September. In 2016, Apple released its new iPhone 7.

This article may have been edited ([ ]), abridged (...) and/or reformatted (structure, title/subtitles, font) by the editorial team of munKNEE.com (Your Key to Making Money!) to provide a faster ...

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Chee Hin Teh 7 years ago Member's comment

Thanks and happy new year