Tech Dividends: Opposites Attracting?

Cisco (Nasdaq: CSCO  ) is about to become a dividend stock, joining the ranks of Microsoft (Nasdaq: MSFT  ) and Intel (Nasdaq: INTC  ) . Should dividend investors be buying Cisco -- and should longtime tech cash hoarders Apple (Nasdaq: AAPL  ) and Google (Nasdaq: GOOG  ) open their deep pockets and finally pay out to shareholders?

Bespoke Investment Group recently noted that tech dividend payers in the S&P 500 have underperformed in recent years. Motley Fool Income Investor advisor James Early says that "tech" as a category is subdividing, and that tech investors and dividends are still getting used to each other. So there's no need to rush in, but once the market embraces tech payers, look for them to outperform alongside other dividend-paying stocks. Watch the video below to see what James has to say. Then scroll down and weigh in with your own thoughts in our comments section.

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James owns no stocks mentioned. The Motley Fool has a disclosure policy. Google and Microsoft are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers pick. The Fool has written calls (bull call spread) on Cisco Systems. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google, and Microsoft.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.


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