It’s often said the technology sector’s allure is in growth, not dividends – a fact that is well captured by the vertical’s low yields relative to others. But income investors shouldn’t shy away from technology companies simply because the sector’s dividend payouts skew to the downside on average (or none at all, for that matter). Our latest reaffirmation for Best Technology Dividend Stock List demonstrates that the sector has a lot more to offer when we look beyond the software-focused large caps.
The U.S. stock market is off to its worst start to a year in over eight decades. Few sectors have fared worse than information technology, as evidenced by the Nasdaq Composite’s 21% year-to-date drop through April 30. Although semiconductor manufacturers have also faced downward pressure amid global supply chain disruptions and sudden factory closures in China due to COVID-19, one leading industry name is showing strong recovery trends.
Our information technology pick is part of the semiconductor industry and recently posted better than expected quarterly financial results. A closer look at its financials reveals improving fundamentals across various business segments. With a 2.6% yield, the stock generates a higher dividend yield than the information technology sector as a whole and has a solid track record of delivering consistently higher payouts. Its next ex-dividend date is scheduled for May 6, 2022.
You can check out the Best Technology Dividend Stocks List to explore all the stocks.
