When most people think about tech stocks, they envision fast-paced growth, sky-high valuations, and an endless climb in share prices. But what if I told you that some of the biggest tech companies not only offer you stock appreciation but also pay you steady, reliable dividends every quarter? It’s true. Some tech giants are quietly rewarding their shareholders with substantial dividends while continuing to expand, particularly in the rapidly growing world of AI and cloud computing.
If you’re ready to explore a different side of tech investing that offers passive income along with growth, let’s dive into some of the tech stocks that pay dividends and why they could be the next smart move for your portfolio.
1. Cisco: A Dividend Tech Giant with AI Growth Potential
Cisco (CSCO) is a name most of us are familiar with, but what you might not know is that this networking powerhouse not only offers innovative solutions for the internet of things (IoT) but also provides its shareholders with a generous quarterly dividend of 41 cents per share. The company has recently crushed earnings reports, with 11% revenue growth and an astonishing $600 million in AI infrastructure orders.
So, how does this impact you? Well, if you own 100 shares of Cisco, you’re looking at $410 in passive income per quarter. Not bad, right? As smart money moves toward AI and cloud-based technologies, Cisco is well-positioned to continue growing, making this dividend stock an attractive option for investors who want to earn while they wait for long-term growth.
2. Oracle: The Database King That Keeps Paying
Oracle (ORCL) is a staple in the tech world, and its reach extends beyond providing database solutions to companies globally. With 11 straight years of dividend increases, Oracle is a dividend aristocrat, a term used to describe companies that have continuously raised their dividend payouts for over 25 years.
Oracle’s recent dividend growth of 25% last year is impressive, but it’s its cloud computing and AI investments that have captured attention. The future looks bright for Oracle, as its software solutions continue to serve some of the world’s biggest organizations. For those looking to add a reliable dividend-paying tech stock to their portfolio, Oracle offers both strong dividend growth and long-term growth potential in the tech industry.
3. IBM: Legacy Tech with Big Dividend Rewards
International Business Machines (IBM) might not be the first tech stock that comes to mind when we talk about high-growth companies, but it is one of the best tech stocks that pays dividends consistently. IBM has been paying dividends for decades, and its most recent payout boasts a robust 5.4% dividend yield, one of the highest in the tech sector.
Despite its challenges in the past, IBM has repositioned itself within the growing hybrid cloud and AI markets. With its massive infrastructure and solid cash flows, IBM continues to be a reliable dividend stock with excellent upside potential for the future. This is a stock for long-term thinkers who want to collect steady dividends while benefiting from IBM’s ongoing transformation into the future of cloud computing.
4. Microsoft: Strong Growth, Steady Dividends
Microsoft (MSFT) needs no introduction. As one of the largest software companies in the world, Microsoft’s reach extends across countless industries and products, from the ubiquitous Windows operating system to cloud services and gaming. While its dividend yield is lower than some of the others, at just over 1%, the dividend growth rate is what sets Microsoft apart.
This tech giant recently announced a 9.8% increase in its dividend, which is excellent news for long-term investors. Even though Microsoft doesn’t offer the highest yield in the sector, its consistency in dividend growth and its potential to continue innovating in cloud computing, gaming, and AI make it an attractive choice for investors looking for both growth and a reliable dividend stream.
5. Apple: Not Just for Growth, But for Dividends Too
Apple (AAPL) has become synonymous with growth. From the iPhone to the Apple Watch, this tech behemoth has revolutionized consumer electronics, creating new markets along the way. But did you know that Apple also rewards its shareholders with a quarterly dividend? Although it’s only 0.68% at the moment, Apple has consistently increased its dividend over time and continues to buy back shares, increasing value for investors.
For investors looking for steady growth without sacrificing income, Apple is an excellent choice. The company’s massive cash reserves and future ventures into new technologies like virtual reality and AI could add to its growth. At the same time, its commitment to paying dividends ensures a steady income stream.
6. NetApp: A Hidden Gem in Cloud Storage
NetApp (NTAP) may not be a household name like Microsoft or Apple, but this cloud storage leader is making waves with its consistent dividend growth and strong financial performance. With a dividend yield of 4.5%, NetApp offers a high dividend payout along with solid growth in the data storage and cloud services markets.
As more businesses shift to cloud computing, NetApp’s role in facilitating these transitions will continue to expand, making this a smart tech dividend stock for those looking for a solid mix of income and future growth potential. With NetApp’s strong earnings and growing market share in cloud storage, this stock is one to keep an eye on.
The Future of Dividend-Paying Tech Stocks
When you think about tech stocks that pay dividends, it’s easy to assume that these companies don’t offer the same growth potential as their non-dividend-paying counterparts. However, as we’ve seen with names like Cisco, Oracle, IBM, Microsoft, and Apple, many tech giants not only continue to innovate but also reward their investors with steady dividends.
Investing in dividend-paying tech stocks is a great way to combine income with growth. These companies offer a reliable income stream while benefiting from the development of the tech sector, especially with advancements in cloud computing, AI, and network infrastructure. Whether you’re a seasoned investor or just starting, adding these stocks to your portfolio could provide you with both long-term wealth and passive income.
So, what are you waiting for? If you’re looking for a balanced approach to investing in the tech sector, where growth meets passive income. These dividend-paying tech stocks should be on your radar.
