However, old guard tech names that pay dividends such as Microsoft (NasdaqGS: MSFT) and Cisco Systems (NasdaqGS: CSCO) are helping drive the sector higher this year.
Traditionally, tech companies have not considered paying back their investors. Instead, many firms opted to reinvest cash back into the company or buy back stocks.
SEE MORE: Tech ETFs with Exposure to Hardware, Internet Segments
However, times are changing, and the technology sector of the S&P 500 is now among the top dividend issuers. Technology companies began to compensate shareholders during the financial crisis, and the habit stuck.
For more news and strategy on the Technology market, visit our Technology category.
Technology Select Sector SPDR
Tom Lydon’s clients own shares of QQQ.