These 3 Tech Companies Are Suddenly Paying Bigger Dividends

Key Points

• While tech stocks typically suffer from a lack of dividends, companies like TSMC and Motorola offer them in abundance.
• Veritiv just announced a huge dividend increase to support its burgeoning payout.
• No stock in the Magnificent Seven sniffs TSMC's impressive yield.

 

 

While tech stocks have many appealing properties, the potential for dividend returns isn’t typically one of them. In fact, more than half of the technology stocks in the S&P 500 Index do not pay a dividend at all. However, that is not the case for the stocks discussed below.

These three firms not only pay dividends, but also recently boosted their payments by between 11% and 67%. Below, we explore how these companies are reshaping income potential in the tech sector.

TSMC Provides AI Exposure and a Substantial Dividend Yield

Let’s start off with a company that has become synonymous with the rise in artificial intelligence: Taiwan Semiconductor Manufacturing NYSE: TSM. The company’s dominant role in manufacturing the world’s most advanced chips is indisputable, leading to highly impressive performance.

Over the past three years, shares have delivered a total return of nearly 250%, including a 40% return in 2025 alone. 

On Nov. 11, TSMC announced a significant 17% increase to its quarterly dividend. Its Q3 2025 payment will move up to approximately 97 cents, per American Depository Receipt (ADR). The firm will distribute the next payment on April 9, 2026, to shareholders of record as of March 17, 2026.

The company has yet to pay its Q2 2025 dividend of $0.83 per ADR. Factoring in one $0.83 payment and three $0.97 payments yields an estimated 1.4%, a very strong figure for the tech sector.

For comparison, the Technology Select Sector SPDR Fund NYSEARCA: XLK has an indicated yield of only around 0.6%.

Vertiv Announces 67% Dividend Increase as Shares Soar

Next up is another stock commonly associated with AI and data centers, Vertiv NYSE: VRT. The company provides a variety of data center solutions, including power supply systems and liquid cooling systems.

Shares have delivered a total return of approximately 41% in 2025, and more than 1000% over the past three years. Last quarter, the company reported strong sales growth of 29% and saw its adjusted operating margin rise by 220 basis points. The company’s adjusted free cash flow also grew by 38% to $462 million.

On Nov. 14, the company announced a whopping 67% increase to its annual dividend, which will rise to 25 cents per share. Vertiv will pay this annual dividend in 6.25-cent quarterly installments, with the next installment payable on Dec. 18 to shareholders of record as of Nov. 13.

Overall, Vertiv’s annual dividend has a yield of approximately 0.16%. Although small, this yield is still notable considering that most tech stocks provide no dividend payments. The firm’s huge increase suggests that it intends to make dividends a larger part of its return profile over time.

Motorola Continues Strong Dividend Growth With 11% Boost

Last up is Motorola Solutions NYSE: MSI. Despite its association with early cell phone technology, Motorola has reinvented itself significantly.

The firm, which now focuses on public safety technology, is arguably the biggest competitor to Axon Enterprise NASDAQ: AXON in the sale of law enforcement body cameras.

Motorola stock has delivered a total return of approximately 45% over the past three years, but is down nearly 20% in 2025.

On Nov. 18, Motorola announced an 11% increase to its quarterly dividend. Its next $1.21 dividend is payable on Jan. 15, 2026, to stockholders of record at the close of business on Dec. 15, 2025.

This gives the stock a solid indicated dividend yield of approximately 1.3%. This stands above the 1.1% indicated yield offered by the S&P 500 Index, as well as higher than the yield offered by 75% of S&P 500 tech stocks. Notably, Motorola’s 2026 annual dividend will be more than double what it paid out in 2019.

TSMC’s Dividend Yield Tops Every Mag 7 Name

TSMC, Vertiv, and Motorola Solutions have all made significant strides in providing increased income to investors. Among these three dividend raisers, TSMC stands out. The company has a stranglehold on advanced chip manufacturing, and its 1.4% yield exceeds that of all Magnificent Seven stocks—with the highest of that group—Microsoft NASDAQ: MSFT—offering approximately 0.8%.