T echnology stocks that pay a dividend aren’t exactly a dime a dozen, but they do exist, particularly in the large-cap space.Microsoft ( MSFT ),Maxim Integrated Products ( MXIM ) andCisco Systems ( CSCO ) are Dividend Leaders. All three not only show excellent earnings stability, but also boast a track record of steady and growing dividends.
Microsoft CEO Satya Nadella has done a good job controlling expenses, and the company’s cloud computing infrastructure, dubbed Azure, is competing well againstAmazon ‘s ( AMZN ) Amazon Web Services. In its latest reported quarter, commercial cloud revenue grew 88%, driven by Office 365, Azure and Dynamics CRM Online. Cloud revenue is now on an annualized revenue run rate of over $8 billion. That’s up from an annualized run rate of $6.3 billion in the prior quarter.
Microsoft’s next dividend of 31 cents a share will be paid on Sept. 10 to shareholders of record Aug. 20. It currently yields 2.6%.
Meanwhile, Maxim Integrated Products’ chips are found in automotive, cloud data center, mobile consumer and industrial applications. The company is set to pay a dividend of 30 cents a share on Sept. 3 to shareholders of record Aug. 20.
Shares of Cisco Systems gapped up last week after fiscal Q4 earnings topped expectations. New CEO Chuck Robbins replaced John Chambers, whose 20-year run as CEO ended in late July.
In its latest reported quarter, Cisco’s switching and routing business accounted for just under half of the company’s $12.8 billion in quarterly sales. Cisco, long known for its hardware, is now focused on offering integrated solutions, made up of hardware, software and services. Its stated goal is to grow software sales at a compound annual growth rate of 10% to 15% over the next three to five years.
Cisco currently pays a quarterly dividend of 21 cents a share, giving it a yield of 2.9%.