In the past, it was uncommon for tech stocks to pay dividends. Many companies in the sector were not profitable in their early stages and needed to save money to sustain their businesses. However, top tech companies today are well-established, profitable, and able to generate significant cash flow. Two such companies that have recently announced dividend increases are International Business Machines (NYSE: IBM) and Qualcomm (NASDAQ: QCOM).
IBM, a tech company with roots dating back to 1911, has a long history of paying dividends. The company has consistently increased its dividend annually, with the latest increase being $0.01 per share to $1.67 per share. IBM has evolved over the years, moving from manufacturing personal computers to focusing on hybrid cloud computing and artificial intelligence. The company’s stock has performed well, and it is positioning itself as a major player in the AI market.
Qualcomm, on the other hand, has been a regular dividend payer for over 20 years. The company recently announced a 6% increase in its dividend to $0.85 per share. Qualcomm is a leader in smartphone chipsets and also operates in the automotive and IoT markets. The company’s smartphone segment showed growth in its latest financial results, while its automotive segment saw a significant increase in revenue.
Both IBM and Qualcomm are well-established companies with strong technological capabilities. IBM’s dividend increase will take effect on June 10, yielding 4% on the current share price. Qualcomm’s dividend will be distributed on June 20, yielding 1.9% on the current share price.
In conclusion, both IBM and Qualcomm are solid investment options in the tech sector. IBM’s focus on AI and Qualcomm’s presence in the smartphone and automotive markets position them for future growth. Investors looking for stable tech stocks with dividend increases may find IBM and Qualcomm attractive options.