In this article, we dive into some of the best technology stocks that offer attractive dividends.
Traditionally, technology stocks have been synonymous with growth, often regarded more as engines of innovation rather than reliable income sources. This perspective still holds true for many fast-growing, early-stage companies in the tech world. However, the landscape has evolved, and today, much of the sector is driven by well-established companies. These businesses are not only posting solid growth, but they are also managing healthy margins and maintaining strong balance sheets with manageable debt. This marks a stark contrast to the dot-com era and is reflected clearly in their dividend payouts.
According to S&P data, more than a third of tech stocks in the S&P Composite 1500 now generate enough cash to pay dividends, up from just 29% in 2014. Technology companies have increasingly become a significant source of income in the broader market, contributing about 13% of the total dividend value in the S&P 1500. Financials remain the largest contributor, but tech is quickly closing the gap.
Several tech companies have gone above and beyond by not only paying dividends but also raising them consistently. S&P Dow Jones Indices reports that tech firms in the S&P 1500 have nearly doubled their dividend payouts since 2014, and the growth in tech dividends ranks third-highest among all sectors. This growth easily outpaces the 6% increase seen across the broader S&P 1500. With payout ratios currently around 36%, there's ample room for reinvestment and future increases.
Now, let's explore some of the top technology stocks that are leading the way in dividend payouts.
Our Methodology:
For this list, we focused on tech companies that offer consistent dividends, specifically selecting those with at least five consecutive years of dividend payments. From this group, we identified 13 companies with the highest number of hedge fund investors based on Insider Monkey’s Q3 2025 database. The rankings are based on the number of hedge funds holding stakes in these companies.
Why are we looking at stocks with the highest number of hedge fund investors? The rationale is straightforward: our research shows that imitating the stock picks of top hedge funds often outperforms the market. Our quarterly newsletter has selected 14 small-cap and large-cap stocks every quarter, delivering a return of 427.7% since May 2014—264 percentage points higher than its benchmark.
1. CDW Corporation (NASDAQ:CDW)
- Hedge Fund Holders: 48 CDW is a standout in the technology space. In December, Morgan Stanley revised its price target for CDW to $177, down from $191, maintaining its Overweight rating. The company’s third-quarter results highlighted a 4% increase in net sales, amounting to $5.7 billion. Gross profit also grew by 5% to $1.3 billion, showcasing its consistent performance amid mixed IT spending. The company’s strength lies in its diverse customer base, which includes government, education, and small businesses, all benefitting from CDW’s deep market experience. Looking ahead, CDW is poised to outperform the US IT market, with expectations of modest growth in 2025.
2. Motorola Solutions, Inc. (NYSE:MSI)
- Hedge Fund Holders: 51 On December 17, Morgan Stanley upgraded Motorola Solutions to Overweight, setting a revised price target of $436. Despite the reduction, the firm sees Motorola’s stock as an attractive entry point, noting its strong track record as a profitable compounder. Motorola’s acquisition of Silvus Technologies for $4.4 billion in May strengthens its position in the public safety sector by bolstering its wireless radio capabilities. The acquisition comes at a time when the demand for secure communications is growing, driven by geopolitical tensions. In the third quarter, Motorola paid out $182 million in cash dividends, repurchased $121 million of shares, and maintained solid financial health.
3. Microchip Technology Incorporated (NASDAQ:MCHP)
- Hedge Fund Holders: 56 Microchip Technology has been underperforming compared to its semiconductor peers, largely due to its focus on industrial systems rather than cutting-edge AI hardware. However, the company’s recent third-quarter guidance, which exceeded analysts’ expectations, has sparked renewed optimism. Microchip’s CEO, Steve Sanghi, pointed to strong bookings activity and a better-than-expected backlog, which suggests the company is on track for growth heading into 2026. Despite challenges in the EV market, the company’s core industrial applications remain strong, positioning Microchip for steady growth in the coming quarters.
These companies exemplify how technology stocks are transitioning from growth-centric ventures to reliable dividend payers. They are investing in their future through strategic acquisitions, strong customer relationships, and a focus on emerging markets like AI and public safety, all while maintaining solid financial fundamentals.