Technology Sector Dividend Yield Continues Its Trek Higher

by: Bespoke Investment Group

While investors plow into the high-dividend-paying sectors like consumer staples, healthcare, and utilities, the technology sector continues to struggle. But don't overlook the big increases we've seen in dividends in technology in recent years.

Below is a chart that shows the historical dividend yield of technology going back to the early 1990s. As shown, the yield has been on a steady trek higher since the dot-com bubble burst, and in recent years it has really picked up even as the sector's value has also increased significantly. In fact, technology's dividend yield is now just about at the level it was at when the market hit its financial crisis low back in late 2008.

Over this time period, the technology sector's price has increased more than 100%, which means dividend payment increases have also just about doubled. You can see in the second chart of utilities how yields normally rise and fall as prices fall and rise, because payouts remain steady. That certainly hasn't been the case with technology.