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Tech Firms May Be Next to Boost Dividends: Strategist

While several large banks recently announced dividend hikes, Channing Smith, vice president and co-manager of Capital Advisors said companies in the tech sector are the next likely candidates to boost dividends.

“The tech sector has the lowest dividend payout ratio compared to any other sectors in the S&P 500, and yet it has the best growth opportunities,” Smith told CNBC. “The financial strength of the tech sector is enormous.”

Smith said the tech sector will likely enter a "multi-year trend" of dividend raises. (Scroll down to see Smith's list of candidates.)

“[Techs] don’t have the regulatory overhang that the financial, health care and energy industries have,” he noted.

Possible Techs to Boost Dividend:

Vodafone

Microsoft

Qualcomm

Applied Materials

Smith Favors:

Pepsi

Johsnon & Johnson

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Scorecard—What He Said:

  • Smith's Previous Appearance on CNBC (Jan. 5, 2011)

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More Market Intelligence:

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CNBC Slideshows—FYI:

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Disclosures:

Smith owns shares of PEP, JNJ and QCOM via ownership of Capital Advisor Funds.

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Disclaimer