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.
10. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 66
International Business Machines Corporation (NYSE:IBM) is among the best technology stocks that pay dividends.
IBM has been working on AI for decades. That long game is starting to show up in the stock. Shares are up nearly 38% so far this year.
To keep pushing its AI strategy, International Business Machines Corporation (NYSE:IBM) has leaned into acquisitions. One of the next deals on the list is Cognitus. At first glance, it doesn’t scream AI. Cognitus focuses on enterprise resource planning, mainly within the SAP ecosystem. However, as more companies bring AI into everyday operations, tying those tools into ERP systems matters. Cognitus helps make that connection, and that fits neatly into IBM’s broader plan.
The numbers also back it up. In the third quarter, IBM’s software segment, which includes its AI products, posted revenue of $7.2 billion, up 10% from a year earlier.
That said, Cognitus alone won’t reshape International Business Machines Corporation (NYSE:IBM)’s AI business overnight. It works more as a supporting piece. The bigger lift comes from IBM’s pending acquisition of Confluent, announced on December 8. Confluent strengthens IBM’s real-time data capabilities, and that caught Wall Street’s attention. Wedbush called the deal a “strong move.” That makes sense as AI runs on massive amounts of data, pulled from many different systems. Cleaning it up and moving it in real time is often the hard part. Confluent helps solve that problem, and it makes IBM’s overall tech stack more cohesive.
International Business Machines Corporation (NYSE:IBM) has also been building through partnerships. The company recently teamed up with AI startup Anthropic. Under the agreement, IBM will integrate Anthropic’s AI models into its software, giving customers more tools to work with as AI use continues to spread.
9. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 66
Accenture plc (NYSE:ACN) is among the best technology stocks to invest in.
On December 16, Accenture plc (NYSE:ACN) and Palantir Technologies announced a new partnership called the Accenture Palantir Business Group. The goal is to speed up the rollout of advanced AI and data solutions that help global clients create value and drive growth. As part of the deal, Accenture was named Palantir’s preferred global partner for enterprise transformation.
The new group brings together teams from both companies. Palantir will provide dedicated forward-deployed engineers. Accenture plc (NYSE:ACN) is contributing more than 2,000 professionals trained on Palantir’s platforms, along with its own forward-deployed engineers. The idea is to move faster, especially when companies need to rethink how their core business processes work.
Julie Sweet, chair and CEO, Accenture, made the following statement:
“With this significant expansion of our ecosystem partnership with Palantir, our clients can accelerate advanced AI across the enterprise and deliver business outcomes faster. In our focus areas, the combination of Accenture’s broad industry and functional experience with Palantir’s powerful platforms will help enable organizations to build AI and data solutions and develop scalable enterprise AI systems that drive reinvention, create value and foster growth.”
A key focus will be on large, complex programs tied to data centers and AI infrastructure. These projects matter for economic resilience and tend to be messy in practice. The joint team will help clients use Palantir Foundry and Palantir’s Artificial Intelligence Platform in environments where security and reliability are critical.
Accenture plc (NYSE:ACN) is a global professional services firm that works with large enterprises on digital transformation. The company helps clients rebuild their digital core and apply AI across operations to create value at speed.
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 72
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best technology stocks to buy.
On December 11, Evercore ISI removed Hewlett Packard Enterprise Company (NYSE:HPE) from the firm’s “Tactical Outperform” list after the company released its October-end quarterly results last week. Though there was “some noise” around the fiscal Q4 numbers and January quarter revenue guidance that came in below the Street, Evercore said its long-term bull thesis remains “largely intact.” Out-year estimates were left mostly unchanged. The firm continues to rate the stock Outperform with a $28 price target.
Hewlett Packard Enterprise Company (NYSE:HPE) reported fiscal Q4 2025 earnings on December 4. It was a record quarter marked by profitable growth and tight execution. Revenue reached $9.7 billion, up 14% year over year. Non-GAAP operating profit rose 26%.
Stronger margins flowed through to cash generation. Free cash flow came in at $1.9 billion for the quarter, above expectations. That wrapped up what management described as a solid fiscal 2025. The company also pointed to a sharp pickup in orders late in the quarter. That’s usually a good sign. It suggests demand under the hood remains healthy, even if headline numbers create debate.
Based on that momentum, Hewlett Packard Enterprise Company (NYSE:HPE) raised its fiscal 2026 non-GAAP diluted EPS guidance. It also lifted the midpoint of its free cash flow outlook. CEO Antonio Neri confirmed the planned sale of HPE’s remaining 19% stake in H3C for about $1.4 billion. The deal is expected to close in the first half of 2026. Proceeds are slated to support plans to bring net leverage down to around 2x by the end of fiscal 2027.
Neri also said the company has completed the acquisition of Juniper Networks. The deal strengthens HPE’s position in networking and aims to create a new industry leader. Integration work is well underway, with unified teams and technologies already in place. Feedback from employees, customers, and partners has been positive so far.
Hewlett Packard Enterprise Company (NYSE:HPE) is a global IT company focused on edge-to-cloud solutions. Its portfolio spans servers, storage, networking, software, and services designed to help businesses run and scale their operations.
7. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 72
Texas Instruments Incorporated (NASDAQ:TXN) is among the best tech stocks to invest in.
On December 16, BofA analyst Vivek Arya raised the firm’s price target on Texas Instruments Incorporated (NASDAQ:TXN) to $185 from $175, while maintaining an Underperform rating on the stock. The update reflects a broader refresh of price targets across BofA’s US semiconductor coverage. The firm views 2026 as the midpoint of an eight- to ten-year cycle focused on upgrading traditional IT infrastructure to support faster, AI-driven workloads.
Near-term trading may remain volatile as investors scrutinize AI returns and hyperscaler cash flows. BofA believes this uncertainty could be partially offset by continued momentum from large language model developers and the buildout of AI-focused manufacturing capacity.
In other news, on December 17, Texas Instruments Incorporated (NASDAQ:TXN) announced the start of production at its newest 300mm semiconductor fabrication facility in Sherman, roughly 50 miles north of Dallas. The plant is part of a long-term investment plan totaling about $40 billion, first outlined three years ago.
The facility, known as SM1, will ramp production in line with customer demand. At full scale, it is expected to produce “tens of millions of chips daily that go into nearly every electronic device,” including smartphones, automotive systems, medical devices, industrial equipment, smart home products, and data centers.
The production launch comes amid a broader expansion in artificial intelligence, semiconductor manufacturing, and data center construction, with increasing activity centered in North Texas.
Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors, with a core focus on analog and embedded processors.
6. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 74
Cisco Systems, Inc. (NASDAQ:CSCO) is among the best tech stocks to invest in.
On December 17, Morgan Stanley lifted its price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $91 from $82 and kept an Overweight rating on the stock. The firm said the AI trade widened beyond semiconductor stocks in 2025, giving a boost to infrastructure companies. Optical networking has been a clear beneficiary. The analyst expects that trend to carry into the first half of 2026. However, looking further out, the analyst noted that investors will “need to get more selective for full year returns given multiples.”
Cisco Systems, Inc. (NASDAQ:CSCO)’s long-standing strength in networking is becoming more relevant in the age of artificial intelligence, especially as agentic AI gains traction. Products like Nexus HyperFabric bring together Cisco’s networking capabilities with Nvidia’s computing and AI software, allowing companies to build infrastructure tailored for AI workloads. Cisco is also pushing into security, describing its Hypershield platform as a fully distributed, AI-native cybersecurity solution.
Those efforts are showing up in the numbers. Cisco Systems, Inc. (NASDAQ:CSCO) posted 5% year-over-year revenue growth in fiscal 2025, with sales reaching $56.7 billion for the year ended July 26. Growth picked up in the first quarter of fiscal 2026, ending October 25, when revenue rose 8% to $14.9 billion.
Management expects that momentum to continue. For fiscal 2026, Cisco is forecasting revenue between $60.2 billion and $61 billion.
Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells networking hardware, software, telecommunications equipment, and a range of technology services used by enterprises, service providers, and governments worldwide.
5. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 89
Applied Materials, Inc. (NASDAQ:AMAT) is among the best technology stocks to invest in.
On December 17, Mizuho raised its price target on Applied Materials, Inc. (NASDAQ:AMAT)to $245 from $205, while keeping a Neutral rating on the stock. The firm sees more upside heading into 2026 as its outlook for wafer fab equipment spending improves. That stronger WFE backdrop is a positive for Applied Materials. Still, Mizuho pointed to a few pressure points. The firm remains cautious about the company’s loss of share in China and its exposure to Intel.
Applied Materials, Inc. (NASDAQ:AMAT) echoed a more constructive tone in its fiscal Q3 2025 earnings update. Management said rising AI adoption continues to drive heavy investment in advanced semiconductors and wafer fab equipment. That demand helped deliver the company’s sixth straight year of fiscal growth. Executives also said the company is well-positioned at key technology inflection points, particularly in faster-growing segments of the market. Applied Materials is extending its leadership in leading-edge logic, DRAM, and advanced packaging, as next-generation technologies move toward volume production over the next few years.
From a financial standpoint, Applied Materials, Inc. (NASDAQ:AMAT) generated nearly $8 billion in operating cash flow and $5.7 billion in free cash flow during the period. Capital spending totaled $2.3 billion, largely tied to the new EPIC Center. Applied Materials also returned $1.4 billion to shareholders through cash dividends.
The dividend story remains a steady one. The company has raised its dividend for eight consecutive years. Over the past decade through 2024, dividend per share growth has averaged around 15% annually, with close to 90% of free cash flow returned to shareholders.
Applied Materials, Inc. (NASDAQ:AMAT) supplies the equipment, services, and software used by semiconductor and display manufacturers to produce chips and advanced display technologies.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is among the best technology stocks to invest in.
On December 17, Oracle Corporation (NYSE:ORCL) said talks around an equity deal for a major data center project in Michigan are “on schedule” and will move forward without Blue Owl Capital. Blue Owl has played a role in financing large data center projects for companies such as Oracle and Meta Platforms in recent months, but it will not be involved in this one.
The company explained that its development partner, Related Digital, selected “the best equity partner from a competitive group of options, which in this instance was not Blue Owl.” Oracle Corporation (NYSE:ORCL) was responding to a report from the Financial Times that cited people familiar with the matter who said Blue Owl would not back the roughly $10 billion project. The Financial Times also reported that discussions with Blue Owl had stalled during negotiations.
Oracle Corporation (NYSE:ORCL)’s heavy spending on large-scale data centers to support artificial intelligence workloads has put the company at the center of a growing debate around whether the AI boom is starting to look like a bubble. In recent months, investors have become more cautious, worried that the massive amounts of capital pouring into AI infrastructure could eventually lead to excess capacity.
That concern showed up in the stock. Oracle shares fell as much as 3.7% in New York trading on December 17. The stock is down nearly 40% over the past three months, giving back a portion of the sharp gains it posted earlier after securing multibillion-dollar computing deals with high-profile customers, including OpenAI.
Oracle Corporation (NYSE:ORCL) develops and sells enterprise software, cloud computing services, and database technology.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is among the best technology stocks that pay dividends.
On December 17, Jefferies analyst Edison Lee lifted Apple Inc. (NASDAQ:AAPL)’s price target to $283.36 from $246.99 while maintaining a Hold rating on the stock. The firm boosted its iPhone shipment forecasts, raising Q1 estimates by 7% and FY26 projections by 3%. It also factored in a foldable iPhone starting in FY27. Jefferies said Apple’s premium pricing gives it a strong buffer against rising memory costs.
In other news, CNBC reported that Apple Inc. (NASDAQ:AAPL) has assured investors it plans to roll out the next version of Siri, its AI-powered voice assistant. A lot is riding on the debut of a “more personal Siri,” especially as Apple has largely stayed on the sidelines of the AI push that accelerated after OpenAI introduced ChatGPT in late 2022.
Apple Inc. (NASDAQ:AAPL) rarely shares details about its product roadmap, but Siri has been an exception. The company had initially planned to release the upgraded assistant in 2025. In March, though, Apple pushed back the launch, even after promoting the feature in ads, saying it would now arrive sometime in “the coming year.”
CEO Tim Cook told investors in October that development work on Siri is moving along well.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is among the best technology stocks to invest in.
Broadcom Inc. (NASDAQ:AVGO) has consistently beaten the broader market and is on pace to do it again in 2025, which would mark its sixth straight year of outperformance. The last time the stock lagged the S&P 500 was back in 2019. Even then, the gap was narrow. The index climbed 29% that year, while Broadcom shares rose 24%. Overall, long-term investors have been well rewarded. The stock is already up more than 42% so far in 2025.
On December 11, Broadcom Inc. (NASDAQ:AVGO) posted its full-year results for fiscal 2025. Revenue reached $63.9 billion, up 24% from the prior year. The bigger surprise came from earnings. Net income jumped to $23.1 billion, nearly four times the $5.9 billion reported a year earlier.
Artificial intelligence was the clear growth driver. Broadcom said AI-related semiconductor revenue surged 74% in the most recent quarter. CEO Hock Tan added that demand remains strong into the first quarter, with AI chip revenue expected to roughly double compared with the same period last year.
Much of this strength comes from Broadcom’s custom chips designed for hyperscale customers. In late November, reports surfaced that Meta Platforms may look to buy Alphabet’s Tensor Processing Unit chips. Broadcom has worked closely with Alphabet for years on TPU development.
The company’s AI accelerators are built for highly specific workloads, especially where patterns are well defined. That contrasts with Nvidia’s GPUs, which offer more flexibility across training, inference, and high-performance computing tasks.
Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs and supplies semiconductors, enterprise software, and security solutions to customers around the world.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is among the best technology stocks that pay dividends.
Microsoft Corporation (NASDAQ:MSFT) is making a massive push into artificial intelligence. In December 2025, the company announced plans to spend $17.5 billion on AI development in India, along with more than $5.4 billion in Canada over the next few years. Those commitments come on top of the already substantial investments Microsoft plans to make in the U.S. and other markets.
This level of spending is expected to translate into solid revenue and profit growth starting in 2026 and continuing beyond that. Over the next five years, Microsoft Corporation (NASDAQ:MSFT)’s expanding AI footprint could meaningfully reshape the long-term outlook for its stock.
AI is set to remain a major growth engine for the company. During its fiscal first quarter, the company poured nearly $35 billion into capital expenditures, the highest quarterly total in its history, as it positions itself to capture demand across AI infrastructure and services. Management has said capital spending will continue to rise in 2026, laying the groundwork for sustained growth in the years ahead.
AI is not the only opportunity on Microsoft Corporation (NASDAQ:MSFT)’s radar. The company also sees quantum computing as the next major catalyst for its cloud business. While still early, it represents a potentially enormous market over the long term.
Back in 2023, CEO Satya Nadella laid out an ambitious target to push Microsoft’s annual revenue beyond $500 billion by 2030. That would imply sales growth of nearly 80% from the more than $280 billion the company generated in fiscal 2025, underscoring just how central these long-term technology bets are to Microsoft’s strategy.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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