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11 Best Tech Stocks to Buy for the Dividends

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Many investors may be surprised to learn that some of the market’s best dividend stocks for both current yield and payout growth can be found in the technology sector.

After all, tech stocks are often characterized by fast earnings growth, rapid pace of change and significant investment in research and development to stay relevant. These traits often make it impractical for many tech stocks to pay dividends, and it shows broadly – the Technology Select Sector SPDR Fund (XLK), a proxy for the tech sector, yields just 1.4% to trail the 1.9% yield for the overall Standard & Poor’s 500-stock index.

However, the tech sector still boasts several high-quality dividend stocks that not only deliver a regular payout, but increase it consistently. These businesses tend to have dominant market share positions, unique competitive advantages and enough cash flow that it’s feasible to return much of it to shareholders in the form of (rising) dividends.

Let’s look at 11 of the best tech stocks to buy for their dividends.

SEE ALSO: The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks

Data is as of Oct. 20, 2017. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Click on ticker-symbol links in each slide for current share prices and more.

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