Good news flooded the week for the markets, with the dividend news adding positive results to stocks and exchange traded funds (ETFs) within the technology sector.
The tech industry is now ripe with large-cap companies that are well-established from the dot-com boom. Many are in a position to share their income streams with their shareholders, as Oracle (ORCL) led the good news amid their declaration of their first-ever quarterly dividend at 0.5 cents per share, reports Dividend Growth Investor.
Other heavyweight tech companies, such as Microsoft (MSFT) and Cisco (CSCO), are not displaying the rapid growth as they once were. As a result, they start distributing larger portions of their net incomes to shareholders in the form of dividends. But will they continue to do so after the dividend tax is repealed?
- Technology Select Sector SPDR (XLK): up 4.9% year-to-date; Cisco is 6.1%; Microsoft is 9.1%; Oracle is 4.6%
- WisdomTree LargeCap Dividend (DLN): down 13.1% year-to-date; yields 5.2%; Microsoft is 2%
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.