Finding tech stocks that pay dividends isn't always easy.
Tech stocks have a reputation for reinvesting profits in growth rather than sharing them with investors. apple Co-founder and longtime CEO Steve Jobs famously refused to pay a dividend because he believed it didn't create value for shareholders, and it seems like up-and-coming tech entrepreneurs are following his example.
But there are some signs that this is changing. Meta Platform and alphabet It declared its first dividend this year, something it could have done long ago, increasing pressure on other big tech stocks. Amazon and TeslaHowever, there are no signs of any payment coming soon.
If you're an income investor and you like tech stocks, there are some good options: Keep reading to find out about the three dividend-paying tech stocks to buy today.
1. Microsoft
Microsoft (Nasdaq: MSFT) With a dividend yield of just 0.7%, it won't win any dividend yield awards, but this tech giant may be one of the most reliable dividend payers out there.
Microsoft began paying a dividend in 2003 and has increased it by at least 10% almost every year since then. The company's competitive advantages should allow it to continue to increase its dividend for years to come, possibly for decades to come.
Microsoft is currently the world's most valuable company with a market capitalization of over $3 trillion and leads a wide range of markets, including enterprise software led by the Office suite, cloud computing where Azure is expanding its market share through Amazon Web Services, and the Windows operating system which dominates the PC market.
The tech giant Johnson & JohnsonThe company has earned a AAA credit rating from Standard & Poor's and has forged a close partnership with OpenAI, positioning itself as a leader in AI.
Given these strengths, Microsoft looks like a good candidate for long-term dividend growth.
2. Taiwan Semiconductor
If you're looking for dividends from the technology sector, the semiconductor industry is one of the best places to look. Taiwan Semiconductor (NYSE:TSM) It's one of the best choices in the industry.
The company is the world's largest contract chip manufacturer, with approximately 60% market share of total third-party chip supply, serving customers such as Apple. NVIDIA, Broadcomand Advanced Micro DevicesIt accounts for approximately 90% of advanced chip production in the foundry market.
TSMC is highly profitable, with operating margins of around 40%, and is one of the world's largest companies with a market capitalization of $800 billion. It currently offers a dividend yield of 1.4%, and the company aims to continue to increase its dividend.
Like Microsoft, Taiwan Semiconductor seems well positioned to benefit from the emergence of generative AI, as many of the big chip designers, such as Nvidia, are using it to make their chips.
3. Oracle
The last dividend tech stock worth buying today is Oracle (NYSE: ORCL)Some investors might view this veteran tech company as something of an industry dinosaur, but they'd be wrong: In fact, its stock has consistently outperformed the market over the past decade.
Oracle may be best known for its database management systems and Java programming language, but it has recently seen an explosion in demand for new data center and cloud infrastructure services, driven by the growth of generative AI. The company has also built close relationships with Microsoft and NVIDIA, which are helping to drive its growth.
In the most recent quarter, cloud infrastructure revenue grew 49% to $1.8 billion, and the company's backlog, measured by remaining performance obligations, also grew rapidly, growing 29% to $80 billion, indicating that demand growth is outpacing the ability to meet it.
Oracle's current dividend yield is 1.3%, and the company has a track record of strong dividend growth since it began paying one in 2009.
With its continued data center buildout, growth in generative AI, and partnerships with Microsoft and Nvidia, Oracle looks like a dividend stock that tech investors should buy and hold.
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Suzanne Frey, an Alphabet executive, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool's board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has invested in Amazon, Broadcom, and Meta Platforms. Motley Fool has invested in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. Motley Fool recommends Broadcom and Johnson & Johnson and recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The article 3 Dividend-Paying Tech Stocks to Buy in June was originally published by The Motley Fool.
