Dividend-News
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Mining The Large Cap Tech Sector For Yield And Dividend Growth
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Published Sun, 17 Jun 2012 02:24:45 -0400 on Seeking Alpha
The large cap tech sector has gone through a huge transformation over the past dozen years as far as value and dividend investors are concerned. During the internet boom, large tech companies routinely sold for 30 to 80 times earnings and did not pay any dividends. Today large cap tech stocks go for 8 to 15 times earnings and pay solid dividend yields of 2% to 4%. With the recent decisions of Dell (DELL) and Apple (AAPL) to initiate dividends, the only one of the top ten large cap tech companies by market capitalization to not pay a dividend is Google (GOOG). The outlook for dividend growth from the tech sector is strong. Moody's investor service projects the tech sector will pay out $26B in dividends in FY2012, an over 14% increase over FY2011 and faster than the roughly 11% annual growth of the prior four years. The tech sector... Read more


