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When you think of tech stocks you don’t think of dividends. Investors like to see growth in their speculative tech investments and a dividend is often believed to be a sign that a company that is reducing its investment in future developments. The truth is that mature technology companies with proven business models have a history of increasing their net income and are able to return that income to shareholders while they continue to invest in and growth their business.

Paying a dividend is good, but growing the dividend is best. Our favorite technology dividend stocks yield 3% or more and have a history of growing their dividend. A high dividend growth rate drives the dividend higher to either increase the yield or maintain the yield against an increase in stock price. We found 6 tech stocks with a high dividend yield and a 5-year dividend growth rate over 4%.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor conducts research, develops, manufactures and distributed integrated circuit related products. It also provides production management and design services. Its products and services are applied to PCs, wire and wireless products, TVs and consumer electronic products.

TSM has a market cap of $64B and a dividend yield of 3.3%. The 5-year dividend growth rate is 8% and it has been paying dividends since 2004. The dividend is paid annually.

American Software (AMSWA)

American Software Inc. develops and markets a wide range of software and services. It operates in three segments, which include resource planning, IT consulting and supply change management.

AMSWA has a market cap of $221M and a dividend yield of 4.3%. The 5-year dividend growth rate is 4.5%. It has been paying dividends since 1990.

Microchip Technology (MCHP)

Microchip Technology develops and manufactures semiconductor products. Its customers use these products in a large range of embedded control applications.

MCHP has a market cap of $6.5B, a dividend yield of 4% and a 5-year dividend growth rate of 9.8%. It has a payout ratio of 67% and has been paying dividends since 2002. MCHP has increased the dividend for each of the last 8 years.

Intel Corp (INTC)

Intel is a chip maker that researches and develops chips for PCs and mobile devices. Their biggest competitor is Advanced Micro Devices (AMD), which up until now has had a firm hold on the mobile chip market. Intel is beginning to gain market share in this space.

INTC has a market cap of $120B, a dividend yield of 3.2% and is growing the dividend at the rapid rate of 14.6%. The payout ratio is just 33% and it has been paying dividends since 1992. The only other tech stock with a market cap and dividend growth rate like Intel is Microsoft (MSFT), which didn’t make this list due to its dividend yield of 2.7%. With the dividend growth rate and range-bound stock price it won’t be long before MSFT makes it to 3%.

Maxim Integrated Products (MXIM)

Maxim Integrated Products designs and manufactures analog circuits for the industrial, communications, consumer and computing markets. Maxim relies on its own fabrication technologies to meet manufacturing requirements.

MXIM has a market cap of $7.3B, a dividend yield of 3.3% and a strong dividend growth rate of 8.8% with 8 consecutive years of dividend increases. The payout ratio is a low 51%. It has been paying dividends since 2002.

Astro-Med (ALOT)

Astro-Med is a diverse tech company. It develops specialty printers and data acquisition systems for a wide range of industries that include everything from aerospace to apparel. The products include both hardware and software.

ALOT has a market cap of $58M, a dividend yield of 3.6% and a 5-year dividend growth rate of 10.3%. It has increased the dividend for 7 consecutive years and has a payout ratio of 71%.

Source: 6 Tech Stocks With Strong Dividend Growth