The decision by Apple (AAPL) to begin offering a 1.8 percent dividend was a relatively earth-shifting decision for the sector. While close followers of other sectors may be confused as to why a dividend as small as 1.8 percent can mean so much, the tech sector is not traditionally the source of many dividends. Dividends are traditionally used by companies that have seen growth plateau. With stable demand, companies will offer their profits back to shareholders directly to encourage them to hold onto shares and ensure that the stock price remains stable.
Technology, though, is a growth sector. Technology firms are traditionally routed in innovation and new ideas, making gains by investing in new concepts and tech to keep growing their businesses. As such, relatively few tech companies offer any sort of dividend, let alone a strong one. However, there are tech firms that offer dividends. As Apple recently proved, the future may hold more dividends for the sector.
So, here are the four strongest dividends in the tech sector. Each offers a dividend yield exceeding 3.5 percent while still operating in the technology sector.
Intersil Corp (ISIL)
Market Cap: $1.42 billion Dividend Yield: 4.27 percent
Intersil is a semiconductor maker that specializes in analog and mixed-signal integrated circuits, developing products for the consumer electronics market.
Market Cap: $500.38 million Dividend Yield: 4.15 percent
Landauer provides technical and analytical services in determining the occupational and environmental exposure to radiation. Landauer provides radiation dosimetry for facilities like nuclear plants, hospitals, medical and dental offices, national laboratories, and universities.
Microchip Technology (MCHP)
Market Cap: $7.06 billion Dividend Yield: 3.80 percent
Microchip Technology is a semiconductor company that are used by its customers in for a variety of embedded control applications. The products it makes include peripheral interface controllers in the 8-bit, 16-bit, and 32-bit variety, as well as digital signal controllers that feature on-board Flash memory technology.
CA Technologies (CA)
Market Cap: $13.65 billion Dividend Yield: 3.61 percent
CA is an independent enterprise information technology management software and solutions company which is engaged in the design and manufacture of IT management software products.
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