From Nasdaq:

Tech stocks may not be well known for their dividends, but investing in a tech company with a reliable dividend can offer both portfolio expansion and potential growth. Microsoft, Apple, and Nvidia are three tech stocks worth considering for their dividend potential. Microsoft has raised its dividend yield to 0.75% in 2023, translating to an annual payout of $3 per share. Meanwhile, Apple offers a yield of 0.5% and increased its dividend by 120% in the last decade. Nvidia’s dividend may be smaller but its stock growth and potential earnings could make it a valuable investment.

Microsoft is stepping up in the tech dividend game, as it has been increasing its dividend payout for 19 years, with a 0.75% yield in 2023. The consistency in dividend growth reflects Microsoft’s business model, with strong products like Windows, Office, Azure, and Xbox driving annual revenue and operating income up over the last decade. It only pays out about 26% of its earnings in dividends, indicating potential for further growth.

Apple’s dividend yield is relatively lower at 0.5%, but it’s consistent and reliable. The company has increased its dividend for 12 consecutive years, showing a 120% growth in the last decade. It pays out only about 15% of its earnings, and investment in markets like AI and virtual reality could ensure dividend growth over the long term.

Nvidia has been capturing the attention of investors, with a stock split that lowered its dividend yield to 0.03%. Despite its modest dividend, its stock growth and potential future earnings make it a promising investment. With a forward P/E ratio of 49, its stock is projected to grow 96% over the next two fiscal years, along with a consistent dividend.



Read more: 3 Dividend-Paying Tech Stocks to Buy Right Now