The information technology sector is normally associated with growth, not dividends. The sector’s dismal performance since the start of 2022 reaffirms the volatile nature of growth stocks during periods of quantitative tightening and economic uncertainty. In this environment, tech companies with a strong track record of delivering higher dividend payments usually make it on income investors’ radar.
Technology stocks have an average dividend yield of 1.37%, which is far below what investors can expect to receive from utilities, REITs and even telecommunications providers. However, our latest reaffirmation, which specializes in fiber optics, yields more than double that amount while also delivering on other important metrics such as earnings growth, affordability and consecutive years of higher dividend payments. Income investors can use this stock to gain exposure to the all-important technology sector without sacrificing their core investment thesis. Investors can expect to receive their next ex-dividend payment on Friday, May 27.
You can check out the Best Technology Dividend Stocks List to explore all the stocks.
