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"Information Technology Dividends Outpace All Others"

1/11/2013

"For what appears to be the first time ever, information technology companies in the Standard & Poor’s index of 500 stocks are paying more in dividends than companies in any other sector, S.&P. reported this week. Multimedia

"Off the Charts: High Tech, High Dividends S.&P. Dow Jones Indices reported that in 2012 the technology sector accounted for 14.7 percent of all dividends paid to investors in the 500 companies, up from 10.3 percent in 2011 and from a little over 5 percent back in 2004. It replaced the consumer staples sector, which had been the largest payer of dividends for the previous three years.  

"The change was largely because of the decision by Apple, now the most valuable company in the world, to begin paying dividends last year. The company had been public for more than three decades before it announced plans in March to begin making payouts. Four other technology companies in the index — all but one of which had been public for more than two decades without paying a dividend — later joined in making payments to shareholders.  

"With those changes, 60 percent — 42 — of the 70 technology stocks in the index are now dividend payers. The dividends from many technology companies are relatively small, however, and of the other sectors, only health care comes close to having as large a share of companies that do not pay dividends" (http://www.nytimes.com/2013/01/12/business/information-technology-dividends-surge-past-consumer-staples-sector.html, accessed 01-12-2013).

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