Historically, the technology sector hasn’t been a common destination for income investors. That’s because tech stocks are generally associated with growth, and thus usually reinvest their hard-earned income to achieve just that.
In recent years, though, technology stocks in the S&P 500 have been increasing the chunk of earnings returned to shareholders at a faster clip than any other sector. As of the end the second quarter, total trailing payouts for tech stocks grew by a whopping 62% year-over-year — the third consecutive quarter it dwarfed all other sectors.
While the trend has been, in part, thanks to big-time increases from big-time tech stocks like Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO), it extends beyond that. In fact, in Q2, more than 85% of dividend-paying technology stocks in the S&P 500 increased their payout by double-digit rates year-over-year.
For income investors, that means the technology sector should be on your radar when you go shopping for dividends. You can start with these four tech stocks: