The Surprising Hiding Place for Top Dividend Stocks

Dividend stocks have a reputation for being conservative, slow-growth companies that don't have much in the way of future prospects. Traditionally, sectors like the utility industry and the consumer goods business have appealed to dividend investors because of their high yields and the stable business models of the companies in those sectors.

For a long time, the concept of a technology-sector dividend stock would have seemed like an oxymoron, as very few of the hottest tech stocks paid any dividend at all. During their heyday in the 1990s, up-and-coming growth companies in the tech sector, including Microsoft (MSFT), Cisco Systems (CSCO) and Oracle (ORCL), never paid any dividends at all. Even those that did, such as Intel (INTC), typically made only minimal token payments to make their shares eligible for purchase by money managers who were required by their fund charters to buy only income-producing investments.

Source: Daily Finance

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