Income strategist seeks select tech growth income plays

Income strategist Kelly Green continues to seek income opportunities in technology despite the sector’s generally low dividend payouts. He points to Intel’s 2023 dividend cut and later suspension as an example of dividend risk when firms must redirect cash to capital spending.

Companies in growth phases typically retain earnings to fund research, development and expansion rather than distribute cash to shareholders. Technology firms often reinvest substantial amounts to maintain product performance and manufacturing competitiveness, and many growth names trade at premium valuations that reduce dividend yields.

Intel paid a quarterly dividend for 32 consecutive years before reducing it from $0.365 to $0.125 in 2023 and suspending payouts about a year later. Company officials attributed the change to years of underinvestment in manufacturing and to the need to fund the IDM 2.0 plan, launched in 2021, which requires tens of billions of dollars in capital expenditures to rebuild foundry and manufacturing capabilities.

Among large technology companies, dividend yields remain low. Broadcom has increased its dividend for 15 consecutive years but yields about 0.7%. Nvidia raised its quarterly payout from $0.01 to $0.25, a yield near 0.4%. Many software and platform firms, including Palantir, distribute no dividend and reinvest cash into growth.

Green pursues targeted opportunities when valuations and company circumstances provide income potential. In 2023 his readers purchased IBM shares when the yield exceeded 5%; that position recorded a 42% gain in 11 months. In 2024 the group bought exchange‑traded 8.375% senior notes issued by Synchronoss Technologies; the notes were redeemed early, producing an 18.2% gain in under a year. In March 2026 they acquired OneSpan Inc. at $10.63 for a 4.89% yield; the stock rose 33.9% in three months, reducing the yield to about 3.7%.

Green recommends considering preferred shares or exchange‑traded senior notes that carry fixed payments and monitoring shares that have been sold off after temporary earnings revisions or sectorwide fear. Some income investors use a mix of fixed‑income instruments and selective equity purchases when company-specific pricing and capital allocation create opportunities.

The examples above include specific dates, dividend changes and returns tied to particular securities and corporate actions that illustrate outcomes for investors who seek income within the technology sector.