Apple (Nasdaq: AAPL; Price: $564.59) has been a no-go for income investors who seek reliable dividends instead of capital gains. That changed in March 2012, however, when the company announced plans for a dividend of $2.65 per share in its fourth quarter, which began July 1.
The move sets a precedent that might get more dividends into the hands of income investors, says Laila Pence of Pence Wealth Management, because higher margin, high-growth companies likely will be under pressure from shareholders to follow Apple and pay a dividend. She believes that Google (Nasdaq: GOOG; Price: $601.00) is next.
Dave Abate, who is a certified financial planner at Strategic Wealth Partners, says some tech companies might increase dividends in response to the income trail that Apple is blazing in the sector. He believes that you should watch Cisco (Nasdaq: CSCO; Price: $16.46), IBM (NYSE: IBM; Price: $195.11), Intel (Nasdaq: INTC; Price: $25.72) and Oracle (Nasdaq: ORCL; Price: $26.18) as likely to do that.