NASDAQ dividend stocks: Income opportunities for Indian investors
The NASDAQ is no longer just a growth-only exchange. In 2024, Meta, Alphabet, and Salesforce declared their first-ever dividends. This shift signals that even the biggest tech companies now reward shareholders with regular income. For Indian investors, NASDAQ dividend stocks offer a rare combination: global tech exposure paired with steady US-dollar cash flow.
Most people associate the NASDAQ with high-growth, zero-dividend names. That perception is outdated. The NASDAQ-100 currently yields around 0.65%, lower than the S&P 500's 1.15%. Yet many individual NASDAQ stocks deliver far more generous payouts. Roughly 61% of NASDAQ-100 companies pay dividends today. Companies like PepsiCo have raised dividends for over 50 consecutive years. Texas Instruments has done so for 22.
The opportunity lies in picking the right names and understanding the tax rules that apply to Indian residents. Rupee depreciation against the dollar adds another layer of return. A dividend paid in dollars today buys more rupees than the same dividend five years ago. This currency tailwind amplifies income for Indian investors over time.
This guide breaks down every dividend-paying tech stock worth watching, their growth records, the tax implications, and how to reinvest your earnings effectively.
Dividend-paying tech stocks on the NASDAQ
Tech companies on the NASDAQ have matured. Many now generate substantial free cash flow that funds both innovation and dividends. The key is knowing which names deliver consistent payouts and which carry risk.
Here is a snapshot of the top NASDAQ dividend payers:
- Apple (AAPL): $1.04 annual dividend, 0.40% yield, 14-year increase streak
- Microsoft (MSFT): $3.64 annual dividend, 0.85% yield, paying since 2003
- Cisco (CSCO): $1.64 annual dividend, 2.10% yield, steady payer
- Texas Instruments (TXN): $5.68 annual dividend, 2.89% yield, 22-year streak
- PepsiCo (PEP): $5.69 annual dividend, 3.90% yield, 50+ year streak
- Broadcom (AVGO): $2.12 annual dividend, 1.24% yield, 12.63% five-year growth
Intel suspended its dividend entirely in August 2024. The company slashed payouts from $0.365 to $0.125 per quarter in 2023, then stopped payouts altogether. Analysts say reinstatement may take years. This is a reminder that even blue-chip dividends carry risk.
If you are new to NASDAQ investing, our complete guide on how to invest in NASDAQ from India covers everything from account setup to platform comparisons.
Five of the seven "Magnificent 7" stocks now pay dividends. Apple, Microsoft, Nvidia, Meta, and Alphabet have all joined the dividend club. Only Amazon and Tesla remain holdouts.
Apple dividend history: slow and steady
Apple restarted dividends in 2012 after a 17-year gap. The decision came under pressure from investors who argued the company was hoarding too much cash. Since then, Apple has raised payouts for 14 consecutive years. The current quarterly dividend stands at $0.26 per share, totalling $1.04 annually.
The yield is modest at 0.40%. This low number reflects Apple's extraordinary stock price appreciation rather than stingy payouts. In absolute dollars, Apple distributes over $15 billion annually in dividends, making it one of the largest dividend payers in the world.
Apple's real strength is its growth rate. The five-year compound annual growth rate sits at 4.86%. More importantly, Apple's payout ratio is just 13.77%. This means the company distributes less than 14% of earnings as dividends. There is enormous room for future increases.
For Indian investors, Apple offers stability. The company holds over $150 billion in cash reserves. Its services revenue now exceeds $95 billion annually, providing a recurring income stream that supports dividends regardless of hardware sales cycles. Dividend cuts are extremely unlikely barring a catastrophic business downturn.
Microsoft dividend growth: the gold standard
Microsoft delivers the strongest dividend growth among mega-cap NASDAQ stocks. The annual payout is $3.64, paid quarterly at $0.91 per share. The yield hovers around 0.85%.
What separates Microsoft is consistency. The company has paid dividends without interruption since 2003. It maintained payouts even through the 2008 financial crisis, when many companies slashed or eliminated their dividends. The five-year dividend growth rate is 10.22%, nearly double Apple's pace. Over the past decade, Microsoft has more than tripled its per-share payout.
Microsoft's payout ratio of approximately 25% leaves plenty of headroom. With cloud revenue from Azure growing above 30% annually and AI products expanding margins, Microsoft can sustain double-digit dividend increases for years. The company also returns capital through share buybacks, which reduce the share count and increase per-share earnings over time.
For perspective, an Indian investor who purchased 10 shares of Microsoft in 2015 at roughly $50 each would now hold shares worth over $4,200. Annual dividend income from those same 10 shares would have grown from $12.40 to $36.40. Both capital appreciation and dividend growth work in the investor's favour.
Cisco and Intel: contrasting yield stories
Cisco offers the highest yield among prominent NASDAQ tech names at roughly 2.10%. The annual payout is $1.64 per share. Growth has been modest at 2.71% over five years, but the dividend remains reliable with a sustainable payout ratio of around 55%.
Intel tells a cautionary tale. The chipmaker suspended its dividend in August 2024 as part of a $10 billion cost-reduction plan. The company also laid off 17,500 employees. Intel had already cut its quarterly payout from $0.365 to $0.125 in 2023 before the full suspension.
Analysts expect Intel to achieve profitable foundry operations and reduce debt before reinstating a dividend. The lesson is clear. High yields can signal strength or distress. Always check the payout ratio and earnings trend before investing.
Building dividend income from NASDAQ stocks
A well-constructed NASDAQ dividend portfolio balances yield with growth. Consider organising holdings into three tiers:
- High-yield anchors (2%+ yield): Cisco, Texas Instruments, PepsiCo, Qualcomm. These provide immediate income and tend to be mature businesses with stable cash flows.
- Dividend growers (0.5-2% yield): Microsoft, Broadcom, Apple. These compound returns over time through above-average payout increases. Their yields are low today, but will grow significantly over a five- to ten-year holding period.
- New initiators (<0.5% yield): Meta, Alphabet, Salesforce. These have tiny yields now but massive growth potential from low payout ratios. Meta's payout ratio is under 9%, leaving room for aggressive increases.
For example, a ₹10 lakh portfolio split equally across Microsoft, Cisco, Texas Instruments, and PepsiCo would generate roughly ₹20,000–₹25,000 in annual dividends before taxes. The real power comes from reinvesting these payouts and benefiting from both dividend growth and rupee depreciation against the dollar.
An investor who bought Microsoft shares five years ago would have seen dividend income alone grow by over 60%. Capital appreciation added another 180%+ on top. This total-return approach is why dividend-growth stocks outperform. Since 1973, dividend growers have compounded at 10.34% annually, compared with 7.82% for the broader S&P 500.
Tax on NASDAQ dividends for Indian investors
Dividend taxation involves two countries. Both the US and India tax your income, but relief is available through the DTAA.
US withholding tax: The default rate for foreign investors is 30%. Under the India-US Double Taxation Avoidance Agreement, the rate is reduced to 25% for individual Indian investors. You must file Form W-8BEN during account opening to claim this reduced rate. Without it, the complete 30% applies.
Your W-8BEN requires your PAN as the foreign tax identification number. Claim benefits under "Article 10(2)(b)" for dividends. The form stays valid for three calendar years.
Indian tax treatment: Foreign dividends are taxed as "Income from Other Sources" at your applicable slab rate — 5%, 20%, or 30%. You must report holdings in Schedule FA of your ITR, even if you received no dividends that year. Schedule FSI captures details of foreign-source income.
Claiming relief: India uses the credit method. Report gross dividends before US tax. Pay Indian taxes at slab rates. Then claim credit for US taxes already paid by filing Form 67 before the ITR due date. For example, if your Indian slab rate is 30%, the effective total tax is 30% — not 55%. You pay 25% in the US and only 5% in India after the credit is applied.
For a detailed breakdown of all tax rules, read our guide on understanding taxation on US stocks in India.
Recent changes: Budget 2025 raised the TCS threshold on foreign remittances from ₹7 lakh to ₹10 lakh. No TCS applies below this amount. Above ₹10 lakh, 20% TCS applies, but is fully refundable when filing returns.
Dividend reinvestment options for Indian investors
Dividend reinvestment plans, commonly called DRIP, automatically use your dividend payouts to purchase additional shares. This creates a compounding effect without any manual effort. Over decades, reinvested dividends can account for more than half of total portfolio returns.
Most Indian-focused platforms do not offer automatic DRIP—vested Finance and INDmoney credit dividends to your wallet for manual reinvestment. You receive the cash, then place a buy order yourself. This introduces a delay and requires discipline.
The exception is ICICI Direct through Interactive Brokers. Interactive Brokers offers automatic DRIP for eligible securities. Your dividends are converted into fractional shares immediately upon receipt. This removes friction and helps compound returns over time. The platform also provides access to markets in the UK, Germany, Japan, and Singapore.
If your platform does not support DRIP, set a quarterly reminder to reinvest dividends manually—even small amounts matter. Reinvesting $50 in dividends every quarter from a $5,000 Microsoft position adds roughly 8-10% to your total return over a decade compared to taking cash.
Fractional share purchasing makes reinvestment practical even with small dividend amounts. Platforms like Vested allow investments starting at just $1. This means even a $5 Apple dividend can be reinvested immediately rather than sitting idle in your account.
The RBI's Liberalised Remittance Scheme permits up to $250,000 per individual per financial year. This covers both new investments and reinvested dividends returned to the US. Keep records of all reinvestments for accurate cost-basis calculations during tax filing.
NASDAQ dividend stocks offer Indian investors a way to earn regular income in US dollars while remaining invested in the world's leading technology companies. Meta and Alphabet's entry into the dividend space in 2024 significantly expanded the opportunity set. With five of seven Magnificent 7 stocks now paying dividends, the NASDAQ is no longer a yield desert.
Focus on companies with low payout ratios and strong dividend growth histories rather than chasing the highest yields. A stock yielding 2% with 10% annual growth will outperform a 4% yielder with zero growth within eight years. Microsoft, Broadcom, and Texas Instruments exemplify this growth-plus-income approach.
Pair this with timely W-8BEN filing and Form 67 submissions to minimise your tax burden. Start small, reinvest consistently, and let compounding work across both dividends and currency appreciation. The combination of dollar-denominated income, tech-sector innovation, and the power of reinvestment makes NASDAQ-listed dividend stocks a compelling addition to any Indian investor's portfolio.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
Table of Contents
The NASDAQ is no longer just a growth-only exchange. In 2024, Meta, Alphabet, and Salesforce declared their first-ever dividends. This shift signals that even the biggest tech companies now reward shareholders with regular income. For Indian investors, NASDAQ dividend stocks offer a rare combination: global tech exposure paired with steady US-dollar cash flow.
Most people associate the NASDAQ with high-growth, zero-dividend names. That perception is outdated. The NASDAQ-100 currently yields around 0.65%, lower than the S&P 500's 1.15%. Yet many individual NASDAQ stocks deliver far more generous payouts. Roughly 61% of NASDAQ-100 companies pay dividends today. Companies like PepsiCo have raised dividends for over 50 consecutive years. Texas Instruments has done so for 22.
The opportunity lies in picking the right names and understanding the tax rules that apply to Indian residents. Rupee depreciation against the dollar adds another layer of return. A dividend paid in dollars today buys more rupees than the same dividend five years ago. This currency tailwind amplifies income for Indian investors over time.
This guide breaks down every dividend-paying tech stock worth watching, their growth records, the tax implications, and how to reinvest your earnings effectively.
Dividend-paying tech stocks on the NASDAQ
Tech companies on the NASDAQ have matured. Many now generate substantial free cash flow that funds both innovation and dividends. The key is knowing which names deliver consistent payouts and which carry risk.
Here is a snapshot of the top NASDAQ dividend payers:
- Apple (AAPL): $1.04 annual dividend, 0.40% yield, 14-year increase streak
- Microsoft (MSFT): $3.64 annual dividend, 0.85% yield, paying since 2003
- Cisco (CSCO): $1.64 annual dividend, 2.10% yield, steady payer
- Texas Instruments (TXN): $5.68 annual dividend, 2.89% yield, 22-year streak
- PepsiCo (PEP): $5.69 annual dividend, 3.90% yield, 50+ year streak
- Broadcom (AVGO): $2.12 annual dividend, 1.24% yield, 12.63% five-year growth
Intel suspended its dividend entirely in August 2024. The company slashed payouts from $0.365 to $0.125 per quarter in 2023, then stopped payouts altogether. Analysts say reinstatement may take years. This is a reminder that even blue-chip dividends carry risk.
If you are new to NASDAQ investing, our complete guide on how to invest in NASDAQ from India covers everything from account setup to platform comparisons.
Five of the seven "Magnificent 7" stocks now pay dividends. Apple, Microsoft, Nvidia, Meta, and Alphabet have all joined the dividend club. Only Amazon and Tesla remain holdouts.
Apple dividend history: slow and steady
Apple restarted dividends in 2012 after a 17-year gap. The decision came under pressure from investors who argued the company was hoarding too much cash. Since then, Apple has raised payouts for 14 consecutive years. The current quarterly dividend stands at $0.26 per share, totalling $1.04 annually.
The yield is modest at 0.40%. This low number reflects Apple's extraordinary stock price appreciation rather than stingy payouts. In absolute dollars, Apple distributes over $15 billion annually in dividends, making it one of the largest dividend payers in the world.
Apple's real strength is its growth rate. The five-year compound annual growth rate sits at 4.86%. More importantly, Apple's payout ratio is just 13.77%. This means the company distributes less than 14% of earnings as dividends. There is enormous room for future increases.
For Indian investors, Apple offers stability. The company holds over $150 billion in cash reserves. Its services revenue now exceeds $95 billion annually, providing a recurring income stream that supports dividends regardless of hardware sales cycles. Dividend cuts are extremely unlikely barring a catastrophic business downturn.
Microsoft dividend growth: the gold standard
Microsoft delivers the strongest dividend growth among mega-cap NASDAQ stocks. The annual payout is $3.64, paid quarterly at $0.91 per share. The yield hovers around 0.85%.
What separates Microsoft is consistency. The company has paid dividends without interruption since 2003. It maintained payouts even through the 2008 financial crisis, when many companies slashed or eliminated their dividends. The five-year dividend growth rate is 10.22%, nearly double Apple's pace. Over the past decade, Microsoft has more than tripled its per-share payout.
Microsoft's payout ratio of approximately 25% leaves plenty of headroom. With cloud revenue from Azure growing above 30% annually and AI products expanding margins, Microsoft can sustain double-digit dividend increases for years. The company also returns capital through share buybacks, which reduce the share count and increase per-share earnings over time.
For perspective, an Indian investor who purchased 10 shares of Microsoft in 2015 at roughly $50 each would now hold shares worth over $4,200. Annual dividend income from those same 10 shares would have grown from $12.40 to $36.40. Both capital appreciation and dividend growth work in the investor's favour.
Cisco and Intel: contrasting yield stories
Cisco offers the highest yield among prominent NASDAQ tech names at roughly 2.10%. The annual payout is $1.64 per share. Growth has been modest at 2.71% over five years, but the dividend remains reliable with a sustainable payout ratio of around 55%.
Intel tells a cautionary tale. The chipmaker suspended its dividend in August 2024 as part of a $10 billion cost-reduction plan. The company also laid off 17,500 employees. Intel had already cut its quarterly payout from $0.365 to $0.125 in 2023 before the full suspension.
Analysts expect Intel to achieve profitable foundry operations and reduce debt before reinstating a dividend. The lesson is clear. High yields can signal strength or distress. Always check the payout ratio and earnings trend before investing.
Building dividend income from NASDAQ stocks
A well-constructed NASDAQ dividend portfolio balances yield with growth. Consider organising holdings into three tiers:
- High-yield anchors (2%+ yield): Cisco, Texas Instruments, PepsiCo, Qualcomm. These provide immediate income and tend to be mature businesses with stable cash flows.
- Dividend growers (0.5-2% yield): Microsoft, Broadcom, Apple. These compound returns over time through above-average payout increases. Their yields are low today, but will grow significantly over a five- to ten-year holding period.
- New initiators (<0.5% yield): Meta, Alphabet, Salesforce. These have tiny yields now but massive growth potential from low payout ratios. Meta's payout ratio is under 9%, leaving room for aggressive increases.
For example, a ₹10 lakh portfolio split equally across Microsoft, Cisco, Texas Instruments, and PepsiCo would generate roughly ₹20,000–₹25,000 in annual dividends before taxes. The real power comes from reinvesting these payouts and benefiting from both dividend growth and rupee depreciation against the dollar.
An investor who bought Microsoft shares five years ago would have seen dividend income alone grow by over 60%. Capital appreciation added another 180%+ on top. This total-return approach is why dividend-growth stocks outperform. Since 1973, dividend growers have compounded at 10.34% annually, compared with 7.82% for the broader S&P 500.
Tax on NASDAQ dividends for Indian investors
Dividend taxation involves two countries. Both the US and India tax your income, but relief is available through the DTAA.
US withholding tax: The default rate for foreign investors is 30%. Under the India-US Double Taxation Avoidance Agreement, the rate is reduced to 25% for individual Indian investors. You must file Form W-8BEN during account opening to claim this reduced rate. Without it, the complete 30% applies.
Your W-8BEN requires your PAN as the foreign tax identification number. Claim benefits under "Article 10(2)(b)" for dividends. The form stays valid for three calendar years.
Indian tax treatment: Foreign dividends are taxed as "Income from Other Sources" at your applicable slab rate — 5%, 20%, or 30%. You must report holdings in Schedule FA of your ITR, even if you received no dividends that year. Schedule FSI captures details of foreign-source income.
Claiming relief: India uses the credit method. Report gross dividends before US tax. Pay Indian taxes at slab rates. Then claim credit for US taxes already paid by filing Form 67 before the ITR due date. For example, if your Indian slab rate is 30%, the effective total tax is 30% — not 55%. You pay 25% in the US and only 5% in India after the credit is applied.
For a detailed breakdown of all tax rules, read our guide on understanding taxation on US stocks in India.
Recent changes: Budget 2025 raised the TCS threshold on foreign remittances from ₹7 lakh to ₹10 lakh. No TCS applies below this amount. Above ₹10 lakh, 20% TCS applies, but is fully refundable when filing returns.
Dividend reinvestment options for Indian investors
Dividend reinvestment plans, commonly called DRIP, automatically use your dividend payouts to purchase additional shares. This creates a compounding effect without any manual effort. Over decades, reinvested dividends can account for more than half of total portfolio returns.
Most Indian-focused platforms do not offer automatic DRIP—vested Finance and INDmoney credit dividends to your wallet for manual reinvestment. You receive the cash, then place a buy order yourself. This introduces a delay and requires discipline.
The exception is ICICI Direct through Interactive Brokers. Interactive Brokers offers automatic DRIP for eligible securities. Your dividends are converted into fractional shares immediately upon receipt. This removes friction and helps compound returns over time. The platform also provides access to markets in the UK, Germany, Japan, and Singapore.
If your platform does not support DRIP, set a quarterly reminder to reinvest dividends manually—even small amounts matter. Reinvesting $50 in dividends every quarter from a $5,000 Microsoft position adds roughly 8-10% to your total return over a decade compared to taking cash.
Fractional share purchasing makes reinvestment practical even with small dividend amounts. Platforms like Vested allow investments starting at just $1. This means even a $5 Apple dividend can be reinvested immediately rather than sitting idle in your account.
The RBI's Liberalised Remittance Scheme permits up to $250,000 per individual per financial year. This covers both new investments and reinvested dividends returned to the US. Keep records of all reinvestments for accurate cost-basis calculations during tax filing.
NASDAQ dividend stocks offer Indian investors a way to earn regular income in US dollars while remaining invested in the world's leading technology companies. Meta and Alphabet's entry into the dividend space in 2024 significantly expanded the opportunity set. With five of seven Magnificent 7 stocks now paying dividends, the NASDAQ is no longer a yield desert.
Focus on companies with low payout ratios and strong dividend growth histories rather than chasing the highest yields. A stock yielding 2% with 10% annual growth will outperform a 4% yielder with zero growth within eight years. Microsoft, Broadcom, and Texas Instruments exemplify this growth-plus-income approach.
Pair this with timely W-8BEN filing and Form 67 submissions to minimise your tax burden. Start small, reinvest consistently, and let compounding work across both dividends and currency appreciation. The combination of dollar-denominated income, tech-sector innovation, and the power of reinvestment makes NASDAQ-listed dividend stocks a compelling addition to any Indian investor's portfolio.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
