Another Technology Dividend Stalwart In The Making?

Its typical for dividend paying stocks to start out as high-growth stocks that reinvest their earnings back into the company to fund future growth.  Over time, the growth slows and a company is left with a steady business that brings in a lot of cash. So instead of adding to the piles of cash they already have, they decide to start paying a dividend.  This is what is happening in the Technology Sector.  Intel (INTC) and Microsoft (MSFT) have been paying a dividend for about a decade.  Earlier this year Apple (AAPL) decided to join the party with its first dividend payment.  And just last year Cisco (CSCO) began giving back to its shareholders with a regular dividend.

Well it seems like CSCO is fully on board with paying and growing their dividend for it's investors.  Earlier this year they raised their dividend payment 33%, and this week they decided to raise it yet again... A whopping 75%.  That gives them an effective yield of 3%.  They've got billions of cash in the bank, but most of that cash is overseas and can't be moved back to the U.S. without paying hefty taxes.  But this has not deterred management, and they seem confident that they can continue to fund the dividend payment through internal growth.  Based on the last two increases, I would expect double digit dividend increases for CSCO in the coming years.  Below are other companies putting more cash into their investors pockets.

Company	Industry	Dividend Increase	New Yield
Cisco Systems, Inc. (CSCO)	Networking & Communication Devices	75.0%	3.00%
Crawford & Company (CRD-A)	Insurance Brokers	33.0%	3.00%
CECO Environmental Corp. (CECE)	Pollution & Treatment Controls	28.6%	2.20%
Knoll, Inc. (KNL)	Business Equipment	20.0%	3.40%
Alterra Capital Holdings Limited (ALTE)	Property & Casualty Insurance	14.3%	2.80%
Bob Evans Farms, Inc. (BOBE)	Restaurants	10.0%	2.80%
Briggs & Stratton Corporation (BGG)	Diversified Machinery	9.0%	2.90%
ITC Holdings Corp. (ITC)	Electric Utilities	7.0%	2.10%
LTC Properties, Inc. (LTC)	REIT - Healthcare Facilities	6.9%	5.30%
Badger Meter Inc. (BMI)	Scientific & Technical Instruments	6.3%	2.00%
Illinois Tool Works Inc. (ITW)	Diversified Machinery	6.0%	2.70%
Questar Corporation (STR)	Independent Oil & Gas	5.0%	3.30%
SeaCube Container Leasing Ltd. (BOX)	Rental & Leasing Services	3.6%	6.40%
National Health Investors, Inc. (NHI)	REIT - Healthcare Facilities	3.1%	5.10%
Connecticut Water Service, Inc. (CTWS)	Diversified Machinery	2.1%	3.10%

Disclosure: I am long INTC and MSFT

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