15 Best NASDAQ Dividend Stocks To Buy

15 Best NASDAQ Dividend Stocks To Buy

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In this article, we discuss 15 best NASDAQ dividend stocks to buy. You can skip our detailed analysis of NASDAQ stocks and the performance of dividend stocks over the years, and go directly to read 5 Best NASDAQ Dividend Stocks To Buy

The NASDAQ, which primarily consists of technology-related stocks, has been experiencing upward momentum since the previous year. In 2023, it saw remarkable growth, achieving its strongest performance since 2020 with an increase of over 43%. As of March 7, it has gained 10.21%, surpassing the broader market's gain of 8.72% this year so far. Notably, according to Jonathan Krinsky, a leading market analyst at BTIG, the NASDAQ-100, which is heavily concentrated in tech, has endured 303 consecutive trading sessions without experiencing a decline of 2.5% or more as of March 5, marking it as the third-longest period without such a significant pullback since 1990. Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) are some of the best dividend stocks listed on the index.

The impressive performance of NASDAQ can be largely attributed to the excitement surrounding artificial intelligence, which has driven up the prices of major technology stocks and boosted the overall market throughout 2023 and into the current year. Additionally, the easing of inflation and the Federal Reserve's indication of potential rate cuts later in 2024 have further supported NASDAQ's rebound from the challenges it faced in 2022. Despite the prevalence of technology companies in the NASDAQ index, many companies offer dividends to shareholders. A notable recent addition to the list of dividend-paying companies in the index is Meta Platforms, Inc. (NASDAQ:META), which made headlines in February of this year by declaring its inaugural dividend. This move marks a significant milestone for the technology sector, which has long been dominated by a select few companies for more than a decade.

Meta's decision to offer a dividend serves as evidence that investors are increasingly interested in dividend-paying stocks for their capacity to provide consistent and reliable income. This trend was evident in 2023 when companies in the US distributed record dividends to their shareholders. According to a report by Janus Henderson, the S&P 500 paid out an all-time high of $70.30 per share last year, a notable increase from $66.92 in 2022. This resulted in a total payment to shareholders reaching a record $588.2 billion, surpassing the previous year's figure of $564.6 billion. The report also mentioned that there were 707 instances of dividend increases reported in the fourth quarter of 2023. These increases amounted to a total of $17.5 billion for the quarter, showing an uptick from the $16.3 billion recorded in the fourth quarter of 2022.