13 Best Technology Dividend Stocks to Invest in

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech giant that offers a wide range of related services to its consumers. The company recently unveiled plans to invest ZAR 5.4 billion to expand its cloud and AI infrastructure in South Africa, signaling its continued commitment to driving digital transformation across emerging markets. This move follows a previous ZAR 20.4 billion investment aimed at enhancing local data center capabilities to support businesses, startups, and government organizations.

For the second quarter of 2025, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $69.6 billion, reflecting a 12% year-over-year increase, while net income climbed 10% to $24.1 billion. The company’s performance was largely supported by a 21% rise in cloud revenue, though growth in Azure remained somewhat tempered. Notably, revenue from AI services soared by 157%, surpassing expectations. Financially, Microsoft remained in a strong position, generating $22.2 billion in operating cash flow and holding $17.4 billion in cash and cash equivalents by quarter’s end. In addition, the company returned $9.5 billion to shareholders through dividend payments and share repurchases.

Microsoft Corporation (NASDAQ:MSFT) currently pays a quarterly dividend of $0.83 per share and has a dividend yield of 0.87%, as of April 10. The company holds a 19-year track record of consistent dividend growth.

Overall, Microsoft Corporation (NASDAQ:MSFT) ranks first on our list of the best dividend stocks in the tech sector. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MSFT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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