In this article, we will discuss the best dividend stocks in the tech sector.
There was a time when tech stocks drew investor interest purely for their growth potential. But more recently, they’ve been gaining attention for a different reason: dividends. This marks a major shift, given that tech companies have traditionally focused their resources on innovation and expansion. Today, a significant portion of the tech sector consists of established firms with solid business models, healthy margins, steady growth, strong financials, and manageable debt levels. According to S&P, about 39% of tech companies in the Composite 1500 index are now returning capital to shareholders through dividends—a notable jump from 28% back in 2013.
In addition, technology stocks have emerged as a major contributor to the market’s overall dividend payouts. FactSet data showed that tech companies now account for around 13% of the total dollar value of dividends within the S&P Composite Index. That puts the tech sector just behind financials, making it the second-largest source of dividends in the index—with a strong chance of taking the top spot in the near future.
What’s more surprising is that tech companies haven’t just begun distributing dividends—they’ve also seen a select group consistently raise their payouts year after year. This group includes some of the world’s most prominent and successful names, alongside major global consulting firms, credit card providers, and other tech-adjacent players. Over the past several years, dividend growth from the technology sector has outpaced that of the broader market. Data from S&P Dow Jones Indices showed that tech companies within the S&P Composite more than doubled their total dividend payouts by 2023 compared to 2013. This growth ranks as the fourth highest among all sectors and significantly surpasses the Index’s overall dividend increase of 7.2% during the same timeframe. With tech’s current dividend payout ratio at just 39%, there appears to be considerable room for further expansion.
The move by leading tech firms to start paying dividends has sparked discussions around finding the right balance between capital appreciation and income generation. Sam Witherow, who manages the JPM Global Equity Income fund, noted that although his fund has traditionally included a mix of dividend-paying companies and those focused on capital growth, the characteristics of some of these companies are now evolving. He made the following comment about these strategies:
“We are seeking to provide clients with both a yield premium to the market and a dividend growth premium to the market at the aggregate portfolio level. It’s the combination of the two characteristics that typically leads to the best risk-adjusted returns. To deliver this we have always looked to have diversified exposure across global industries including traditionally growthier industries like consumer discretionary or tech.”
Sam Buckingham, an investment manager at Abrdn Portfolio Solutions, pointed out that growth stocks offering smaller dividends could be useful for income funds aiming to diversify across different sectors and investment factors. He explained that while these stocks typically start with lower yields, they often have the potential for dividend growth over time. When paired with more traditional income stocks—like those in the utilities sector that offer higher initial payouts but slower growth—they can help create a more balanced portfolio. Given this, we will take a look at some of the best dividend stocks in the tech sector.
Our Methodology
For this list, we scanned the holdings of the S&P Information Technology index, which tracks the performance of major tech companies. From there, we identified companies that pay dividends to shareholders and picked 13 companies with the highest number of hedge fund investors, as per Insider Monkey’s Q4 2024 database. The stocks are ranked according to the number of hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Number of Hedge Fund Holders: 31
Skyworks Solutions, Inc. (NASDAQ:SWKS) is an American semiconductor company, headquartered in California. The company is playing a key role in advancing the wireless networking revolution. It stands as a prominent developer, manufacturer, and supplier of analog and mixed-signal semiconductor products and solutions, serving a wide range of applications.
In the first quarter of 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) reported revenue of $1.07 billion, which fell by over 11% from the same period last year. However, the revenue beat analysts’ estimates by $1.76 million. The company secured 5G content for high-end Android smartphones from brands such as Samsung Galaxy, Xiaomi, and Asus. It also played a role in supporting Gemtek’s introduction of the first AI router, which features a voice-enabled, AI-powered healthcare service.
Skyworks Solutions, Inc. (NASDAQ:SWKS)’s cash position also remained strong. The company generated $377 million in operating cash flow, and its free cash flow came in at $338 million. The operating cash flow represented 35% of its margin, and the free cash flow accounted for 32% of its margin. The company currently offers a quarterly dividend of $0.70 per share, having raised it by 2.9% in July 2024. This marked its 10th consecutive year of dividend growth, which makes SWKS one of the best dividend stocks in the tech sector. The stock has a dividend yield of 5.2%, as of April 10.
12. Roper Technologies, Inc. (NASDAQ:ROP)
Number of Hedge Fund Holders: 54
Roper Technologies, Inc. (NASDAQ:ROP) is a Florida-based broadly diversified technology firm that manages a portfolio of 28 businesses, each of which leads within its specific niche. These businesses are organized under three main segments: application software, network software, and technology-enabled products.
Although Roper Technologies, Inc. (NASDAQ:ROP) is clearly recognized as a tech company today, it didn’t start out that way. In its early years, the company was rooted in the industrial sector, producing items like home appliances, pumps, and other industrial equipment. Over the past two decades, the company has steadily moved away from its capital-heavy and cyclical industrial operations by selling off most of those businesses. Today, its focus is on acquiring high-margin, asset-light technology and software firms that generate steady, recurring revenue.
Roper Technologies, Inc. (NASDAQ:ROP) posted solid results for the fourth quarter of 2025, with revenue reaching $1.88 billion, which showed a 16.3% increase compared to the same period a year earlier. Adjusted net earnings rose 10% to $520 million. As part of its strategic growth plan, the company invested $3.6 billion in acquiring top-tier vertical software firms. Among the notable additions were Procare Solutions, a key player in early childhood education software, and Transact Campus, which was successfully merged with the CBORD division focused on education and healthcare software.
On March 7, Roper Technologies, Inc. (NASDAQ:ROP) declared a quarterly dividend of $0.825 per share, which was in line with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 33 years, which makes it one of the best dividend stocks on our list. The stock supports a dividend yield of 0.60%, as of April 10.
11. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
Commonly known as Big Blue, International Business Machines Corporation (NYSE:IBM) is an American multinational tech company. On March 18, the company revealed a new partnership with NVIDIA aimed at enhancing the power and accessibility of AI for businesses. The collaboration involves integrating NVIDIA’s AI Data Platform into IBM’s hybrid cloud infrastructure, enabling companies to better handle their data and scale AI operations more effectively. IBM Consulting will also support this initiative by helping businesses automate workflows with NVIDIA’s AI technologies.
International Business Machines Corporation (NYSE:IBM)’s quantum computing segment has seen notable growth in recent years. Since 2017, its IBM Quantum offerings have brought in close to $1 billion in cumulative revenue—highlighting the early success of its strategy, which combines advanced superconducting qubit hardware, hybrid-cloud capabilities, and the open-source Qiskit software toolkit. The company plans to continue developing this area with a roadmap focused on improving error correction and system fidelity in the years ahead.
In terms of financial performance, International Business Machines Corporation (NYSE:IBM) delivered strong cash results in 2024, generating $13.4 billion in operating cash flow and $12.7 billion in free cash flow. During the fourth quarter, it returned $1.5 billion to shareholders through dividends. Currently, it offers a quarterly dividend of $1.67 per share and has a dividend yield of 2.91%, as of April 10. The company has been rewarding shareholders with growing dividends for the past 29 consecutive years.
10. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a Texas-based multinational tech company that specializes in a wide variety of computer hardware and software products. Sales of AI servers are projected to surge nearly sixfold between 2024 and 2030, potentially reaching $838 billion in yearly revenue by the end of the decade. Dell currently leads the server market, holding an estimated 7.2% share in the fourth quarter of 2024. This rising demand for AI servers significantly boosted Dell’s infrastructure business in fiscal 2025, with revenue from that segment climbing 29% year over year to $43.6 billion.
In the fourth quarter of the fiscal year 2025, Dell Technologies Inc. (NYSE:DELL) reported revenue of $23.9 billion, up 7% from the same period last year. Its operating income for the quarter came in at $2.2 billion, which grew by 40% on a YoY basis. The company generated over $4.5 billion in operating cash flow, and its free cash flow amounted to over $3 billion.
On March 18, Dell Technologies Inc. (NYSE:DELL) announced an 18% boost to its annual cash dividend, bringing it to an anticipated $2.10 per common share. The first quarterly payment of $0.525 per share is scheduled for May 2, 2025, for shareholders on record as of April 22, 2025. Alongside this, the board of directors approved a $10 billion expansion of the company’s share repurchase program. With a dividend yield of 2.66%, as of April 10, DELL is one of the best dividend stocks from the tech sector.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 64
An American semiconductor manufacturing company, Analog Devices, Inc. (NASDAQ:ADI) ranks ninth on our list of the best dividend technology stocks. The company develops and markets integrated circuits, software, and subsystems for a range of industries, including automotive, healthcare, and consumer electronics. Its offerings include data converters, power management tools, and MEMS technology. Recently, the company has focused on innovation through product launches and strategic collaborations, introducing developments like CodeFusion Studio and the ADI Assure Trusted Edge Security Architecture.
In the fourth quarter of 2024, Analog Devices, Inc. (NASDAQ:ADI) reported $2.42 billion in revenue—a 3.56% decline from the same period the previous year—but still exceeded analyst expectations by $63.55 million. The company saw quarter-over-quarter growth across its Industrial, Automotive, and Communications segments, while its Consumer division delivered double-digit growth year over year.
With a strong cash position, Analog Devices, Inc. (NASDAQ:ADI) remains an appealing choice for income-focused investors. The company posted $1.12 billion in operating cash flow for the quarter, representing 47% of total revenue, while free cash flow stood at $978 million, or 40% of revenue. On February 19, it announced an 8% increase in its quarterly dividend, raising the payout to $0.99 per share. Through this increase, the company stretched its dividend growth streak to 21 years. As of April 10, the stock has a dividend yield of 2.22%.
8. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 66
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor company that specializes in analog and embedded chips. The company currently pays a quarterly dividend of $1.36 per share and has a dividend yield of 3.47%, as of April 10. In 2024, it achieved its 21st consecutive annual dividend hike, which makes TXN one of the best dividend stocks from the tech sector.
Texas Instruments Incorporated (NASDAQ:TXN) earns most of its revenue through two main segments: Analog and Embedded Processing. One of its key strengths lies in its in-house manufacturing operations, which give the company greater control over production and its supply chain.
Over the past year, Texas Instruments Incorporated (NASDAQ:TXN) has focused on how it allocates capital to sustain a healthy free cash flow. This strategy includes continued investment in research and development, as well as expanding its manufacturing footprint. Texas Instruments also prioritizes building strong relationships with its customers, aided by its digital sales platform, TI.com. Its dedication to sustainable practices not only meets regulatory expectations but also supports its public image and environmental impact.
Texas Instruments Incorporated (NASDAQ:TXN) has cemented its leadership position in the semiconductor industry. Under the guidance of former CEO Rich Templeton, TI became a standout in dividend growth, raising its payout at an annual rate of 24% between 2004 and 2023. In FY24, the company posted $6.3 billion in operating cash flow over the trailing twelve months, along with $1.5 billion in free cash flow. During the fourth quarter alone, it returned $4.8 billion to shareholders through dividends.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based multinational semiconductor manufacturing company that specializes in wireless telecommunications technology. The company is well-positioned to capitalize on the rise of AI and the growing demand for edge computing. Its alliances with major players like Samsung and Google have strengthened its presence across mobile and PC platforms.
In the first quarter of fiscal year 2025, QUALCOMM Incorporated (NASDAQ:QCOM) delivered impressive results, posting $11.7 billion in revenue—up 17.6% from the same period the year before. This marked the third straight quarter of double-digit revenue growth and set a new quarterly record for the company. The chip segment (QCT) was a major contributor, bringing in $10.1 billion in revenue, a 20% increase year-over-year. Within this division, smartphone chip sales climbed 13% to $7.6 billion, automotive revenue soared 61% to $961 million, and the Internet of Things (IoT) segment expanded 36% to $1.5 billion.
QUALCOMM Incorporated (NASDAQ:QCOM) also ended the quarter with a strong financial position, holding over $3.1 billion in cash and cash equivalents. It generated nearly $4.6 billion in operating cash flow and returned $942 million to shareholders through dividends. The company has raised its payouts for 21 consecutive years, coming through as one of the best dividend stocks on our list. With its quarterly dividend standing at $0.89 per share, QCOM offers a dividend yield of 2.53%, as of April 10.
6. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 79
A multinational tech company, Accenture plc (NYSE:ACN) specializes in information technology services and management consulting. In the most recent quarter, the company reported having 32 clients with quarterly bookings exceeding $100 million and celebrated another milestone in Generative AI, securing $1.4 billion in new bookings. This ongoing growth is driven by the exceptional efforts of over 800,000 employees globally, who are dedicated to delivering value to clients every day.
In fiscal Q2 2025, Accenture plc (NYSE:ACN) reported a revenue of $16.66 billion, which showed a 5.44% growth from the same period last year. The revenue surpassed analysts’ estimates by $49.7 million. The company secured new bookings totaling $20.9 billion, representing a 3% decline in US dollars, though remaining flat in local currency. Within this, Generative AI accounted for $1.4 billion in new bookings. The operating margin was 13.5%, reflecting a 50 basis point increase but a slight decrease of 20 basis points compared to the adjusted operating margin. Diluted earnings per share (EPS) reached $2.82, marking a 7% increase, with a 2% rise compared to the adjusted EPS.
Accenture plc (NYSE:ACN)’s cash position has remained strong, which has been supporting its dividend payments. In the most recent quarter, the company reported operating cash flow and free cash flow of $2.85 billion and $2.68 billion, respectively. During the quarter, it also returned $929 million to shareholders through dividends. The company offers a quarterly dividend of $1.48 per share and has a dividend yield of 2.08%, as of April 10. ACN has never missed a dividend since 2005.
5. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational digital communications tech company that deals in networking hardware, software, and telecommunications equipment. In the past 12 months, the stock has surged by 15%, outperforming the broader market. The company has solidified its leadership in enterprise networking, maintaining a strong presence in both conventional and next-generation network technologies. Cisco continues to dominate key areas such as wireless access, switching, and routing while also playing an integral role in security and collaboration solutions. As businesses increasingly turn to hybrid cloud models and embrace more flexible work arrangements, the company stands to benefit from these shifting dynamics. Its broad portfolio of integrated networking and security tools provides a distinct competitive advantage.
In fiscal Q2 2025, Cisco Systems, Inc. (NASDAQ:CSCO) delivered better-than-expected results, reporting adjusted earnings of $0.94 per share on revenue of $13.99 billion—exceeding analyst forecasts of $0.91 in EPS and $13.87 billion in revenue. The company’s revenue rose 9.4% year-over-year, with AI infrastructure orders totaling $350 million. Management highlighted a 29% increase in total product orders compared to the previous year, or 11% growth excluding the impact from Splunk.
Cisco Systems, Inc. (NASDAQ:CSCO) also reported a robust cash performance, with operating cash flow climbing 177% year-over-year to $2.2 billion, up from $0.8 billion in the same quarter of fiscal year 2024. By the end of the quarter, the company held close to $17 billion in cash and equivalents. On February 12, Cisco announced a 3% hike in its quarterly dividend to $0.41 per share, marking the 18th consecutive year of dividend growth. As of April 10, the stock has a dividend yield of 2.9%.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 105
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company. According to analysts, the company has bright prospects. With the rising demand for AI services, the need for advanced data centers to power these applications has surged as well. Oracle, a major global player in the data center server space, has seen gains from this trend as the market increasingly seeks high-performance, state-of-the-art servers. In addition to supplying these systems, the company also runs an extensive cloud data center network of its own. In the past 12 months, the stock has surged by over 9.5%.
In fiscal Q3 2025, Oracle Corporation (NYSE:ORCL) reported a revenue of $14.13 billion, which grew by 6.4% from the same period last year. The company posted cloud revenue—comprising both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—of $6.2 billion, reflecting a 23% year-over-year increase in US dollars. Specifically, revenue from its cloud infrastructure segment (IaaS) rose by 49% to reach $2.7 billion. The company has secured cloud agreements with several leading tech firms, including OpenAI, xAI, Meta, NVIDIA, and AMD. Looking ahead, Oracle anticipates that its substantial $130 billion sales backlog will support a projected 15% growth in total revenue for the upcoming fiscal year beginning this June.
Oracle Corporation (NYSE:ORCL) also generated strong cash. The company’s operating cash flow and free cash flow over the last 12 months came in at $20.7 billion and $5.8 billion, respectively. It ended the quarter with $17.4 billion available in cash and cash equivalents. On March 10, the company declared a 25% hike in its quarterly dividend at $0.50 per share. It is one of the best dividend stocks on our list, as the company has maintained its dividends since 2009. The stock’s dividend yield, on April 10, came in at 1.5%.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) ranks third on our list of the best dividend stocks from the tech sector. The American semiconductor company offers a wide range of semiconductor and infrastructure software products. In the first quarter of 2025, the company posted a revenue of $14.9 billion, marking a 24.7% increase compared to the same quarter a year earlier. This figure exceeded analysts’ expectations by $325.2 million. The company’s top-line growth and adjusted EBITDA were driven by strong momentum in its AI-focused semiconductor offerings and infrastructure software. Revenue from AI surged 77% year-over-year to $4.1 billion, while infrastructure software sales rose 47% to reach $6.7 billion.
Broadcom Inc. (NASDAQ:AVGO) also maintained a healthy cash position, generating more than $6.1 billion in operating cash flow. Free cash flow topped $6 billion, accounting for roughly 40% of total revenue. The company returned $2.77 billion to shareholders in the form of dividends during the quarter, reinforcing its shareholder-friendly approach. Currently, it offers a quarterly dividend of $0.59 per share and has a dividend yield of 1.37%, as of April 10.
The number of hedge funds tracked by Insider Monkey owning stakes in Broadcom Inc. (NASDAQ:AVGO) grew to 161 in Q4 2024, from 128 in the previous quarter. The collective value of these stakes is over $22 billion. With nearly 24 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL), a major US multinational technology firm, provides a broad portfolio of products and services to its customers. In the first quarter of the fiscal year 2025, the company posted a revenue of $124.3 billion, reflecting a 4% increase year-over-year. Its record-breaking revenue and strong operating margins led to a new peak in earnings per share, which saw double-digit growth. These results allowed Apple to return more than $30 billion to its shareholders. The company continues to refine its user experience with advancements in Apple silicon, using Apple Intelligence to deliver more tailored and enhanced app features.
Apple Inc. (NASDAQ:AAPL) also maintained a solid cash position in the quarter, ending with over $30.2 billion in cash and cash equivalents—slightly higher than the $29.9 billion recorded three months earlier. Operating cash flow during the quarter came in just shy of $30 billion. The company’s quarterly dividend sits at $0.25 per share for a dividend yield of 0.53%, as of April 10. It is one of the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 13 years.
At the end of Q4 2024, 166 hedge funds in Insider Monkey’s database owned stakes in Apple Inc. (NASDAQ:AAPL), growing from 158 in the previous quarter. The overall value of these stakes is over $118.5 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech giant that offers a wide range of related services to its consumers. The company recently unveiled plans to invest ZAR 5.4 billion to expand its cloud and AI infrastructure in South Africa, signaling its continued commitment to driving digital transformation across emerging markets. This move follows a previous ZAR 20.4 billion investment aimed at enhancing local data center capabilities to support businesses, startups, and government organizations.
For the second quarter of 2025, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $69.6 billion, reflecting a 12% year-over-year increase, while net income climbed 10% to $24.1 billion. The company’s performance was largely supported by a 21% rise in cloud revenue, though growth in Azure remained somewhat tempered. Notably, revenue from AI services soared by 157%, surpassing expectations. Financially, Microsoft remained in a strong position, generating $22.2 billion in operating cash flow and holding $17.4 billion in cash and cash equivalents by quarter’s end. In addition, the company returned $9.5 billion to shareholders through dividend payments and share repurchases.
Microsoft Corporation (NASDAQ:MSFT) currently pays a quarterly dividend of $0.83 per share and has a dividend yield of 0.87%, as of April 10. The company holds a 19-year track record of consistent dividend growth.
Overall, Microsoft Corporation (NASDAQ:MSFT) ranks first on our list of the best dividend stocks in the tech sector. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MSFT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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