The idea that technology companies don't pay dividends comes from the industry's early years, when most businesses focused on growing as quickly as possible. During the dot-com boom of the late 1990s and early 2000s, tech companies typically reinvested their profits into expansion, new products, and gaining market share. Returning cash to shareholders was rarely a priority. Over time, this created the perception that technology stocks were not suitable for dividend investors. That perception has started to change as the industry has matured. Several major tech companies have introduced dividend payments to reward shareholders. 2024 was an important year in this shift, with some of the biggest names in technology announcing dividend policies.
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