10 Best Tech Stocks That Pay Dividends

Page 1 of 3

The idea that technology companies don’t pay dividends comes from the industry’s early years, when most businesses focused on growing as quickly as possible. During the dot-com boom of the late 1990s and early 2000s, tech companies typically reinvested their profits into expansion, new products, and gaining market share. Returning cash to shareholders was rarely a priority. Over time, this created the perception that technology stocks were not suitable for dividend investors.

That perception has started to change as the industry has matured. Several major tech companies have introduced dividend payments to reward shareholders. 2024 was an important year in this shift, with some of the biggest names in technology announcing dividend policies. Most of these stocks still offer modest yields, but their ability to grow payouts as earnings increase makes them worth considering for long-term dividend investors. It also gives dividend growth portfolios greater exposure to a sector that has traditionally been underrepresented.

Also read: 10 Best Dividend Stocks for Long Term Growth

Technology stocks have played a major role in driving market returns in recent years, and dividend investing is beginning to reflect that shift. Analysts believe this creates new opportunities for both investors and companies. Matt Quinlan, lead portfolio manager for Franklin Equity Income fund and Franklin Rising Dividends fund, said income strategies now “have access and exposure to those names that have driven the market more recently.” Tom Huber, portfolio manager for T. Rowe Price Dividend Growth fund, also sees room for this trend to continue. “There will be more and more opportunities for dividend growth investors to buy technology stocks,” he says.

Most technology companies still prefer to use their cash to grow the business or buy back shares rather than distribute it through dividends. That’s been the norm for years. The decision by some of the largest tech companies to start paying dividends shows that this approach is gradually changing. Investors looking for companies that take a different approach to capital allocation can also explore our list of 10 Best Debt Free Dividend Stocks to Buy Right Now.

Quinlan said that these companies have attractive financial models that generate tremendous cash flow. They can both invest in the business and reinvest to maintain those competitive positions, while also paying dividends. Billionaire investors basically pick them for the first reason. The yield on these stocks is not as attractive for billionaire investors; the main reason is that they think these stocks can generate superior risk-adjusted returns over the long term. Given this backdrop, we will take a look at some of the best tech stocks that pay dividends.

Our Methodology:

For this list, we screened Insider Monkey’s database of billionaire investors to identify dividend-paying technology companies. We included companies with at least 10 years of consecutive dividend payments. We then examined their current dividend yields and five-year average annual dividend growth rates. Finally, we ranked the stocks based on the number of billionaire investors holding stakes in each company.

10. Analog Devices, Inc. (NASDAQ:ADI)

Number of Billionaire Holders: 26

Dividend Yield as of November 9: 1.13%

5-Year Average Annual Dividend Growth Rate: 9.78%

Analog Devices, Inc. (NASDAQ:ADI) is paying out a dividend yield of 1.13% as of November 9. That’s a fairly low yield, but the company has a very strong track record of dividend growth, so it could be a worthwhile holding for an investor with a longer time horizon. Its 5-year average annual dividend growth rate is 9.78%.

In Q4 2026, the company increased its quarterly dividend by 11% to $1.10 per share, which marked its 22nd year of dividend increases. It has produced positive free cash flow for 29 consecutive years, which is a very solid base for a capital return program. Since the company started its dividend policy 22 years ago, it has returned $32 billion to shareholders via dividends and share buybacks.

The business model is very conducive to future dividend growth. Analog Devices is a developer of high-performance analog, mixed-signal, and digital signal processing chips used in industrial equipment, automotive, communications, and data center applications. This means the company takes real-world signals and turns them into information the electronic system can use. Industrial automation, EVs, advanced driver assistance systems, and AI infrastructure could all be sources of additional demand for its products. It also benefits from existing relationships with manufacturers building products with very long operating lives.

At a 1.13% yield, ADI isn’t really that attractive to an investor who wants a good income stream today. Its appeal is more in the dividend growth and the potential for capital appreciation. The emphasis would be on its track record of dividend growth, the generation of free cash flow, and the potential to benefit from the long-term demand for advanced electronic components. Read ADI’s full analysis here.

9. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Billionaire Holders: 30

Dividend Yield as of November 9: 2.11%

5-Year Average Annual Dividend Growth Rate: 6.36%

QUALCOMM Incorporated (NASDAQ:QCOM) has a dividend yield of 2.11% as of November 9 and has a 5-year average annual dividend growth rate of 6.36%. The company’s dividend policy provides a regular income stream and exposure to the semiconductor sector.

In July 2026, the company announced a $0.92 per share quarterly cash dividend. Qualcomm has two main businesses: its semiconductor business, which makes the Snapdragon and other computing and connectivity platforms, and its technology licensing business, which makes money from its vast wireless patent portfolio.

The licensing business is very much relevant to the dividend investor, as smartphone OEMs and others in the industry are all reliant on the technologies covered by QUALCOMM’s patent portfolio. That’s a significant source of revenue for the company other than the direct sale of the chips themselves. The chip business goes out and sells chips to smartphones, automotive systems, industrial devices, and all sorts of connected products.

The auto market is another area of opportunity. Modern vehicles are increasingly digital with connected car capabilities, digital cockpits, driver assistance, and all the associated computing. Qualcomm has technologies in several of those areas and can therefore be involved in the growing amount of electronic content in the car.

The expansion of on-device AI, the proliferation of connected devices and the evolution of wireless networks could also generate further demand for its semiconductor products. That in itself could be a significant opportunity to diversify the business beyond its traditional reliance on smartphones.

Its 2.11% yield is pretty respectable but may not be enough for an investor who’s looking for yield on the balance of things. An investor might instead look at the dividend growth potential, the licensing business, and the potential to go into new markets. The IP and the semiconductor business together give QUALCOMM a number of ways in which it can support shareholder distributions over time. Qualcomm is also added to our list of 10 Best Autonomous Vehicle Stocks to Buy Now.

Page 1 of 3