Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 Technology Stocks That Offer Income And Capital Growth

By Investing.com (Haris Anwar/Investing.com)Stock MarketsOct 13, 2021 15:41
ph.investing.com/analysis/2-technology-stocks-that-offer-income-and-capital-growth-94021
2 Technology Stocks That Offer Income And Capital Growth
By Investing.com (Haris Anwar/Investing.com)   |  Oct 13, 2021 15:41
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

If you’re an investor seeking to earn steadily growing income from your retirement portfolio, technology companies might not be on your radar. Returning cash to shareholders through dividend payments isn’t the priority of many tech firms that generally redeploy their cash to generate more growth.

That said, you can still find a handful of top technology companies that pay growing dividends each year, making them a good fit in any retirement portfolio. These names generally offer a combination of capital growth and decent quarterly income.

Here's a look at two tech stocks that pay steadily growing dividends, making them a good addition to your retirement portfolio:

1. Microsoft

While picking a quality stock for your retirement portfolio, one of the most important factors is stability in dividend income in both good and bad times. Microsoft (NASDAQ:MSFT) is one stock that fits that bill perfectly.

Microsoft Weekly Chart.
Microsoft Weekly Chart.

Many investors mistake Microsoft for just a pure technology play in great growth mode. But if you dig a little deeper, the company also has terrific income appeal. Microsoft has an excellent track record when it comes to rewarding investors.

During the past five years, Microsoft has delivered about 9.4% growth in its payout per year, supported by a low payout ratio and strong underlying businesses. Last month, MSFT announced a massive 11% hike in its payout, increasing the per-share quarterly dividend to $0.62. With this dividend hike, Microsoft also has announced a $60-billion share buyback plan, which is another way of rewarding investors by reducing the company’s free-float.

MSFT’s 1% dividend yield may look meagre to many investors, but don’t forget that Microsoft is still growing, while offering great upside potential, too. Including dividend payments, Microsoft has delivered 411% in total returns over the past five years.

Going forward, there is a good possibility this Washington-based company will keep boosting its payout as its growth momentum continues. During the pandemic, demand surged for its cloud-computing services, video gaming and computers, helping the company to make massive profit.

If you are investing for retirement, you need to find companies like Microsoft to stash in your portfolio. These are the giants that have the power to defend their businesses and pay you for the rest of your life.

2. Texas Instruments

Texas Instruments Incorporated (NASDAQ:TXN), a tech giant that produces electronic products including chips that are used in many diversified industries, is another solid name to add to your income portfolio.

The Dallas-based company has tens of thousands of products and more than 100,000 customers who make everything from phones to military hardware. That extensive depth insulates the company’s revenue from the cyclical nature of the chip industry, making it a reliable income generator.

The company’s dividend program has been growing for the past 18 years. With an annual dividend yield of around 2.38%, TI currently pays $1.15 a share quarterly, which has grown 26% per year since 2004.

Texas Instruments Weekly Chart.
Texas Instruments Weekly Chart.

With its payout ratio of just over 60%, TI is in a comfortable position to hike its dividend going forward. In addition, the company’s long-term growth prospects are bright with the amount of electronics being added to cars and machinery.

2 Technology Stocks That Offer Income And Capital Growth
 

Related Articles

2 Technology Stocks That Offer Income And Capital Growth

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email