The Next New Thing for Tech Companies: Dividends

Monday, 02 Jul 2012 07:19 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
For years technology companies were content to simply give their investors strong growth, but now they are increasingly providing dividends too.

“Dividends became a badge of dishonor in the ‘90s, a stigma that endured into the new century,” Kevin Kelleher writes in Fortune. “[That’s] why it's ironic that, in 2012, the dividend has been making something of a comeback in the tech sector.”

Even Apple, whose share price has rocketed 44 percent higher so far this year, announced in March that it would pay out dividends for the first time since 1995.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown

And earlier in June, Dell, whose stock has dropped 14 percent so far this year, decided to offer a dividend for the first time in its history.

Other tech stalwarts that issue dividends include IBM, Cisco, Microsoft, and Intel. Dividends per share among tech companies rose 24 percent last year.

And eight of the 31 companies in the Standard & Poor’s 500 that started paying dividends in 2010 and 2011 were in the tech sector, according to Factset.

Many analysts expect more dividend increases for tech companies. Moody's analyst Richard Lane forecasts a 14 percent gain for 2012.

Some of the more established tech names providing dividends, such as Microsoft and Intel, have seen little appreciation in their share price over most of the last decade.

So you can view the stocks almost as bond-equivalents, offering attractive yields without great risk of principal loss.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown



© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved