Rewind twenty years and people would think you were crazy looking for dividend stocks in the technology sector. Not only were firms pouring all of their cash into growth opportunities, but it was far too early in the tech revolution to be confident enough in future cash flows to offer a dividend.
But that was then, and this is now. With the onset of the capital-light software-as-a-service (SaaS) business model, many of today’s top software companies are finding that they have far more cash than they know what to do with. That makes them ideal candidates for dividend investors.