Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Microsoft Corporation (MSFT), J2 Global Inc (JCOM) & Tech Companies That Pay Dividends Too

The technology sector is typically considered an area of high growth. It’s for that reason that we sometimes have great difficulty finding dividend-payers in the sector. I’ve done some searching though, and I’ve found three companies from three distinct technological realms to help diversify that dividend portfolio.

Application software

You had to know that Microsoft Corporation (NASDAQ:MSFT) would make an appearance in this article, right? Well, here it is, in the application software segment.

Microsoft pays a very nice dividend that yields right around the 3% mark. Combine that 3% with the security you get from holding one of the world’s largest software companies, and you may have yourself a great investment to sit on.

“May?” Yes, and quite rightly so. Microsoft has been sitting in equilibrium for some time now. The stock doesn’t really go anywhere. If you’re already an investor, and you’ve been one for five years, then you’ll probably be aware that the stock has returned a paltry 3% during that time. Oh, and that’s not per year! That’s actually the grand total return on Microsoft Corporation (NASDAQ:MSFT), sans dividends, over the last five years.

Microsoft Corporation (MSFT)Despite sitting stagnant, Microsoft Corporation (NASDAQ:MSFT) has actually increased sales quite dramatically since 2008, going from $60 billion up to the $73 billion that we saw at the close of 2012. Net income is down over the same period from a 2008 amount of $17.68 billion to $16.98 billion in 2012. The peak sales during that period came in fiscal year 2011, when Microsoft put up $23.15 billion in net income.

With the company effectively being stagnant, I would only recommend a buy to those of you who want the security of such a big firm with a moderately high dividend yield. For everyone else, I’d have to say hold if you own, avoid if you don’t. There are plenty of other tech stocks to make money from if you’re not already in this one.

Internet software and services

J2 Global Inc (NASDAQ:JCOM) is an internet-based communications company with six products flying under their banner. The products allow users to send faxes through the web, perform email marketing, and back up data. These services combined give the company a $1.77 billion market cap.

J2 Global is seeing moderate sales growth year-after-year, and net income is also on the rise. Sales have grown from $241 million in 2008 to a 2012 value of $371 million. Net income has risen from $72.5 million in 2008 to the $121.5 billion that was posted at the close of 2012.

With promising sales and net income growth, this is looking like a good company to hop aboard with. The dividend that it pays is 2.41%. That’s not too shabby, and could easily bolster your dividend portfolio.

Communications equipment

QUALCOMM, Inc. (NASDAQ:QCOM) could actually fall under any number of categories. When it really comes down to it though, this company is a communications company that is tasked with bringing faster chips to cellphones, and ensuring that you can get connected to your 4G network.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.