Tech Dividend Aristocrats: Investing in Growth and Stability

NEW YORK, NY — In recent years, technology stocks have attracted investors not just for growth, but also for dividends. With over 39% of tech companies in the Composite 1500 index now paying dividends, a trend is emerging. This is up from 28% in 2013, indicating that tech firms are diversifying their financial strategies.

According to FactSet, technology is becoming a significant contributor to overall market dividend payments, representing roughly 13% of total dividends in the S&P Composite Index. Investment manager Sam Buckingham of Abrdn Portfolio Solutions highlights the value of growth stocks with smaller dividends, stating they could appeal to income funds looking to diversify.

As tech companies continue to mature, their focus is shifting. Rather than funneling all resources into innovation, many now offer dividends, adding another layer of enticement for investors. This transformation has led to a growing interest in identifying the best dividend aristocrats within the tech sector.

To compile a list of top dividend stocks, the S&P Technology Dividend Aristocrats Index was analyzed. This index tracks technology-related companies that have increased their dividend payouts for a minimum of seven consecutive years. Using data from Insider Monkey, ten stocks with the highest hedge fund interest as of Q1 2025 were selected.

One notable performer is the International Business Machines Corporation (NYSE:IBM), known as Big Blue. IBM has declared a quarterly dividend of $1.68 per share, a modest increase that marks 30 consecutive years of dividend growth. The company reported $4.4 billion in operating cash flow within the latest quarter, although its revenue growth appears uneven.

Another strong candidate, Accenture plc (NYSE:ACN), offers an enticing quarterly dividend of $1.48 per share after a substantial increase in December 2024. Accenture has seen an average annual dividend growth rate of 8.2% over the past five years, showing its commitment to increasing shareholder returns.

Even as tech companies battle challenges in revenue consistency, their dividend strategies and financial health are reassuring for long-term investors. With the tech sector evolving, investing in dividend aristocrats presents an appealing avenue for those seeking both stability and growth.