The technology sector has an average dividend yield of 0.9%. Office equipment noted the highest dividend yield among the segments within the industry. Only office equipment and communications and networking have beaten the dividend yields of the broad-based stock indexes.
Industries within this sector and the top dividend payer under the respective industry are as follows:
- office equipment with a dividend yield of 4.3% and Canon (CAJ)
- communications and networking with a dividend yield of 2.6% and Cisco Systems (CSCO)
- computer hardware with a dividend yield of 2% and Western Digital (WDC)
- phones and handheld devices with a dividend yield of 1.7% and Apple (AAPL)
- semiconductors with a dividend yield of 1.6% and Taiwan Semiconductor Manufacturing (TSM)
- IT services and consulting with a dividend yield of 1.3% and Infosys (INFY)
- electronic equipment and parts with a dividend yield of 1.3% and LG Display (LPL)
- semiconductor equipment and testing with a dividend yield of 1.2% and ASML (ASML)
- software with a dividend yield of 1% and Microsoft (MSFT)
- household electronics with a dividend yield of 0.7% and Sony (SNE)
- Internet services with a dividend yield of 0.1% and Visa (V)
The office equipment segment ended in the red on June 1. Only the office equipment and electronic equipment and parts segments generated negative six-month returns.
The sector added 0.2 million jobs in 2017. Rising penetration of cloud computing and cost efficiencies, machine learning, user-friendly technology in every domain, and data collection have been the main growth drivers of the sector. Tech companies are merging resources for mutual benefit with their indirect competitors, undergoing mergers and acquisitions, and divestitures and actively capitalizing on startups in domains like artificial intelligence. However, concerns loom over cybersecurity and potential regulations.
The WisdomTree US MidCap Dividend ETF (DON) offers a dividend yield of 3.9% at a PE of 23.6x. It has 22% and 7% exposure to consumer cyclical and technology, respectively. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) offers a dividend yield of 3.6% at a PE of 17.3x. It has 21% and 7% exposure to real estate and technology, respectively.