Investors do not immediately think of dividends when they research tech stocks. Indeed, technology companies are largely associated with having high growth potential, and growth stocks generally don’t offer dividends. Some do, but the payouts are often too small to justify as a reason for buying shares.
Tech corporations which have the potential to significantly increase their cash payouts over time make for valuable investment prospects, even if they do not currently offer an attractive yield. They should be in demand because they have strong potential in giving current shareholders (or shareholders who buy soon) a higher dividend yield than they currently receive.
Here are three tech stocks, AMAT, CSCO and AAPL, which have the ability to significantly increase the cash payouts they provide to investors. Each of them is capable of generating a high level of cash flows, and this is the key reason for why they are able to support higher dividend payments to shareholders.
Let's take a look at these top three tech stocks …