In this article, we will take a look at some of the best technology stocks that pay dividends.
Technology stocks have always carried a reputation for growth. For years, they were seen mainly as engines of innovation, not income. That view still holds in some corners of the sector. Early-stage and fast-growing companies are still part of the mix. However, the sector itself has matured.
Today, much of the technology space is made up of established companies. These businesses run proven models. They post solid growth, healthy margins, and strong balance sheets. Debt levels are often manageable. This is a long way from the dot-com era. That shift shows up clearly in dividends as well.
S&P data shows that more than one-third of technology stocks in the S&P Composite 1500 now generate enough cash to pay dividends. Back in 2014, that figure was 29%. Technology has also become a meaningful source of income for the broader market. FactSet estimates that tech companies account for about 13% of the total dollar value of dividends in the S&P Composite 1500. Only financials contribute more right now. Tech is already in second place, and it is closing the gap.
Some companies have gone a step further. They are not just paying dividends, but also raising them year after year. According to S&P Dow Jones Indices, tech firms in the S&P 1500 have nearly doubled the total dollars paid out in dividends through 2024 compared with 2014.
A ProShares report shows dividend growth in tech ranks as the third-highest of any sector. It easily beats the roughly 6% increase seen across the full S&P Composite 1500 over the same period. There is still room to run. Tech sector payout ratios sit around 36%. That leaves flexibility for reinvestment and future increases.
Given this, we will now take a look at some of the best technology stocks that pay dividends.
Our Methodology:
For this list, we screened for tech companies that offer dividends and identified companies with at least 5 consecutive years of dividend payments. From that group, we picked 13 companies with the highest number of hedge fund investors, as per Insider Monkey’s Q3 2025 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. CDW Corporation (NASDAQ:CDW)
Number of Hedge Fund Holders: 48
CDW Corporation (NASDAQ:CDW) is among the best technology stocks to invest in.
On December 17, Morgan Stanley cut its price target on CDW Corporation (NASDAQ:CDW) to $177 from $191. The firm kept its Overweight rating. In its year-ahead view on IT hardware, Morgan Stanley said it prefers companies tied to cloud spending, product refresh cycles like Apple, and businesses with more differentiated assets. It is steering away from names with heavy memory exposure, including Dell and HP. The analyst stated that the firm is becoming more cautious regarding memory-linked stocks overall.
CDW Corporation’s (NASDAQ:CDW) third-quarter results demonstrated why the company continues to stand out. The business generated $5.7 billion in net sales, up 4% from last year. Gross profit climbed 5% to $1.3 billion. That kind of steady growth tends to matter more in a mixed IT spending environment.
Management pointed to strengths across several areas. Government and education customers benefited from CDW’s deep experience in those markets. Small business was a bright spot, delivering double-digit growth in both revenue and gross profit. Demand for AI workstations among smaller firms picked up during the quarter. The corporate segment also held up well. Revenue rose at a mid-single-digit pace, while gross profit grew in the low single digits. Security and cloud projects led the way.
Looking ahead, management reaffirmed its 2025 outlook. CDW Corporation (NASDAQ:CDW) expects the US IT market to grow in the low single digits and believes it can outperform by 200 to 300 basis points. Gross profit in the second half of the year is still expected to be slightly higher than the first half, though the split should be less balanced than the historical 48% and 52% pattern. Gross margins in 2025 are expected to stay roughly in line with 2024.
CDW Corporation (NASDAQ:CDW) is an American multi-brand provider of IT products and services. It serves customers across business, government, education, and healthcare.
12. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 51
Motorola Solutions, Inc. (NYSE:MSI) is among the best technology stocks that pay dividends.
On December 17, Morgan Stanley analyst Meta Marshall upgraded Motorola Solutions, Inc. (NYSE:MSI) to Overweight from Equal Weight. The firm set a new price target of $436, down from $471. Even with the lower target, Morgan Stanley said the stock now offers a more attractive entry point.
The analyst described Motorola Solutions as a profitable compounder. At current levels, its valuation sits closer to the S&P 500, which changes the risk-reward setup. Morgan Stanley also sees room for growth as the company keeps investing in public safety technology and integrates its Silvus acquisition.
Back in May, Motorola Solutions, Inc. (NYSE:MSI) announced plans to buy Silvus Technologies for $4.4 billion. The deal closed in the third quarter of 2025. Silvus makes wireless radios, and the acquisition strengthens Motorola’s position as demand for secure communications rises. That demand has been picking up alongside higher geopolitical tensions and regional conflicts. Silvus also adds depth to Motorola’s hardware portfolio. It gives the company more tools to meet growing orders for radios and related equipment, especially from government and defense customers.
The balance sheet stayed solid during the recent quarter. Motorola paid $182 million in cash dividends and repurchased $121 million of its own shares. It spent $66 million on capital expenditures and retired $70 million of 6.5% debentures that came due during the period.
Motorola Solutions, Inc. (NYSE:MSI) is a US-based technology company focused on safety and security products and services, serving customers across public safety and enterprise markets.
11. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 56
Microchip Technology Incorporated (NASDAQ:MCHP) is among the best technology stocks to invest in.
On December 16, Mizuho analyst Vijay Rakesh raised his price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $80 from $75 and kept an Outperform rating. The change came as the firm updated its views across semiconductors and chip equipment names heading into 2026.
Mizuho flagged pressure in the EV market. U.S. electric vehicle sales fell 20% to 50% month over month in October and November. Canceled and delayed launches expected in 2026 could add to the drag. The firm sees a mixed setup for the sector, with analog and auto suppliers facing headwinds, while industrial end markets may hold up better.
Microchip Technology Incorporated (NASDAQ:MCHP) has trailed much of the semiconductor space this year. Its chips are used widely in industrial systems, not in cutting-edge AI hardware, and that has mattered. The stock is down close to 6% over the past six months.
That tone started to shift after the company updated its outlook for the third quarter of fiscal 2026, which ends December 31. The revised forecast came in above Street expectations. Microchip Technology Incorporated (NASDAQ:MCHP) now expects both revenue and EPS to land at the high end of its prior guidance. That implies about 1% sequential growth, better than earlier guidance that pointed to a decline. Management also said the updated revenue outlook reflects roughly 12% growth from a year ago.
Microchip’s President and CEO Steve Sanghi made the following statement:
“With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call. Our bookings activity has remained strong through November, with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter.”
Microchip Technology Incorporated (NASDAQ:MCHP) supplies microcontrollers, mixed-signal and analog products, along with Flash-based IP. The company is known for pairing its hardware with strong technical support, which tends to matter in industrial applications.
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