With Dell(DELL) becoming the latest tech giant to perform an about-turn in its dividend strategy, tech sector dividends are once again in the investor spotlight. The no. 2 PC maker may have grabbed most of the headlines when it announced plans for a quarterly payment of 8 cents per share last week, but experts say that Microsoft(MSFT), Intel(INTC) and Cypress Semiconductor(CY) are the key tech dividend stocks.
Doug Freedman, an analyst at RBC Capital Markets, says that the popularity of dividends reflects the growing maturity of many U.S. tech companies. "The growth in their business is not consuming all of their cash now," he told TheStreet. "In the old days, they were growing so fast that they needed every dollar they could get their hands on to grow their business."
Source: The Street
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