Technology companies are usually not the ones which make it onto the list of top dividend stocks. In fact, investors who have more of an appetite for risk pick technology companies to capture the upside potential they offer as they develop the latest gadgets and technologies for the Internet economy.
Another reason why technology companies aren’t famous for paying top dividends is that they operate in a highly competitive industry where they have to deploy a lot of cash to invest in innovations to stay in the game.
But if you’re an income investor and looking for sustained growth in your income portfolio, you need to diversify your holdings in a way that it captures all segments of the economy. Today’s startups will reach their mature business cycle in the next few years, and that may be the time when those companies start returning cash to their shareholders in the form of dividends.
I’ve shortlisted the following technology companies with a solid track record of growing dividends each quarter and rewarding their investors who believed in their business models and their ability to ward off the competitive pressures.