While investors favor technology stocks for their growth, they can also be a reliable source of dividend income. Dividend tech stocks offer investors above-market earnings growth and a reliable income stream.

As we head into 2024, technology has emerged as one of the most resilient sectors. Secular growth trends such as the digitization of the economy, artificial intelligence and electric vehicles are supporting growth in these companies. Another advantage is that most of these companies are largely unaffected by higher yields. Since they are profitable and generate tremendous free cash flows, they don’t rely on the debt market for financing.

Adding some dividend tech stocks here is recommended, given the positive outlook and the likelihood of earning growth in 2024. The Finviz stock screener reveals technology stocks with a dividend yield greater than 1% and a payout ratio below 50%. Typically, a low payout ratio creates an opportunity for dividend growth.

Then, since investors want an increasing income stream, these selected stocks show at least five years of dividend growth.

Broadcom (AVGO)

This semiconductor company Broadcom (NASDAQ:AVGO) is at the nexus of some exciting growth trends. Its traditional radio frequency and wireless business counts Apple (NASDAQ:AAPL) as a key customer. Also, it’s heavily involved in artificial intelligence. Companies such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) have been relying on Broadcom to provide AI chips for its cloud infrastructure.

In terms of yield, the company boasts a 2.15% trailing dividend yield and a low 45% payout ratio. Additionally, it has an impressive 12-year dividend growth record. Considering that Broadcom’s profitability is improving, these dividend increases are sustainable.

One drawdown is that the company’s semiconductor solutions business can be cyclical. However, the company has materially improved its revenue stability by making several software acquisitions in recent years. The software acquisition spree began in 2018 with the $18.9 billion acquisition of CA Technologies. Then, in 2019, it acquired the enterprise security business of Symantec Corporation. And in 2022, it announced the $61 billion acquisition of VMware (NYSE:VMW).

These acquisitions have pushed the company’s operating margins from the teens to over 30%. If the VMware deal closes, yet another profitable addition will increase free cash flow.

Cisco Systems (CSCO)

Cisco Systems (NASDAQ:CSCO) is one of the dividend tech stocks that has been highly acquisitive to improve its business, moving into software. The recent acquisition of Splunk (NASDAQ:SPLK) is an attempt to increase software revenues and enhance its security offerings.

In 2023, Cisco’s earnings have been impressive, aided by increased enterprise spending. Although the macro environment has been gloomy, companies are prioritizing cloud spending. Cisco’s networking hardware, software infrastructure, and security offerings are crucial to the migration to the cloud. Indeed, it is one of the dividend tech stocks with a secular tailwind from the digitization of the economy and cloud migration.

These growth prospects bode well for the company’s dividend, which has steadily grown for 12 years and yields almost 3%. Management is committed to shareholder returns, and the yield can only continue to grow. Besides, at a forward price-to-earnings of 13, it’s one of the cheapest dividend growth stocks.

Texas Instruments (TXN)

Since hitting 2023 highs of $186 in July, Texas Instruments (NASDAQ:TXN) has been down in a straight line to the low 150s. The selloff accelerated in September after Bernstein analyst Stacy Rasgon downgraded the stock. Now, it’s hovering slightly above his price target of $145.

Despite this, Texas Instruments is one of the most profitable semi stocks with operating margins above 40% and deserves a second look. First, it has the balance sheet to navigate the current downturn in analog chips. Second, in the coming decade, the firm will be a significant beneficiary of trends such as automation, as its integrated circuits are an integral part of today’s systems.

While analysts focus on the short term, the company is investing for the long term. The company is building wafer fabrication plants in Texas and Utah. These investments will yield incredible returns over the coming decades.

With over 80,000 store-keeping units, TXN is an indispensable chip company. Its integrated circuits go into everything from vehicles to chargers. After the recent slump, it yields over 3%. That’s a sumptuous dividend to enjoy before industrial semi demand recovers.

Oracle (ORCL)

Oracle (NYSE:ORCL) has been one of the biggest AI winners in 2023. As of this writing, ORCL stock is up 34% year to date (YTD), making it one of the best-performing dividend tech stocks. Despite the considerable run-up, Oracle still has plenty of upside.

Notably, ORCL has emerged as a leader in cloud computing solutions for artificial intelligence. Its Oracle Cloud Infrastructure (OCI) has the lowest total cost of ownership. As a result, companies are using the company’s infrastructure to build and train their AI models.

Considering we are still in the early stages of the AI revolution, Oracle has plenty of room for growth. And although the yield is a low 1.45%, increases are bound to happen in the future. The payout ratio is only 30%, and management has an opportunity to improve its 8-year dividend growth record.

Furthermore, most analysts are bullish on the stock. TipRanks analysts rate the stock a moderate buy, and the average price target of $130 represents a 19% upside.

Amphenol (APH)

Outside of the popular dividend tech stocks, Amphenol (NYSE:APH) is a high-quality company that flies under the radar. It manufactures cables, sensors and connectors. Its products are used in mobile devices and networks, vehicles, military applications, data communication equipment and industrial applications.

A substantial portion of Amphenol revenues originates from the industrial and IT datacom segments. Notably, the company could be a beneficiary of the reshoring spending taking place throughout the U.S.

Another tailwind is investments in AI. As companies build out data centers and networks, they will need many interconnections. Amphenol has a leadership position with its technology having the highest speeds and lowest latency and will benefit tremendously.

As this plays out, you can earn a healthy 1% yield that will likely grow. The company has increased its dividend for 11 consecutive years and has a 28% payout ratio.

Motorola Solutions (MSI)

On the heels of a recent positive note by Bank of America, it’s time to consider Motorola Solutions (NYSE:MSI). Analysts led by Tomer Zilberman initiated coverage with a “buy” rating and set a $330 price target. They issued bullish commentary, citing robust demand, a favorable revenue mix, and an upgrade cycle.

First, this public safety and enterprise security company will benefit from a healthy funding environment. Funding from the American Rescue Plan Act will support a robust order backlog.

Second, the analysts think the company deserves a higher multiple as its revenue mix shifts positively. Notably, software and services revenues now represent 37% of revenue from 27% in 2016. And they expect the ratio to hit 40% in 2025.

Other catalysts include its land mobile radio and video security businesses benefiting as some Western nations shun Asian suppliers. Furthermore, an upgrade cycle in the land mobile radio category will be a growth catalyst over the next two years.

The company has increased its dividend for 10 consecutive years and yields 1.2%, having ended Q2 with a record $14.3 billion backlog.

Microchip Technology (MCHP)

In terms of dividend records, Microchip Technology (NASDAQ:MCHP) ranks high, along with other blue-chip stocks. This semiconductor company is a dividend contender that has increased its dividend for 20 consecutive years. Yet, there is plenty of room to grow its 2% yield as the payout ratio is a modest 22%.

The company continues to generate solid profits. Therefore, the yield is sustainable and will only grow going forward. It has well-diversified consumer, aerospace and defense, automotive, industrial, and data center and computing end markets.

These end markets are spurring demand. At the August shareholder meeting, management said they expect revenue to increase at a 10-15% compounded annual growth rate over the next five years. And with resilient free cash flow margins, the firm can generate robust free cash flows over the cycle.

The company expects to return 50% of adjusted free cash flow to shareholders. Even more appealing is the plan to return 100% when net leverage drops below 1.5x. Based on these plans, future dividend increases are highly likely. Hence, it’s one of the top dividend tech stocks to buy.

On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.