The following is a guest post by Andrew Martin.

Technology stocks do not usually come to mind when investors think about dividends as they are more volatile than their peers in the banking or utilities sectors. That being said, a technology stock that pays a dividend should generally be less risky than those that don’t pay one. Instituting a dividend sends a signal to investors that management is confident in the business and committed to its shareholders.

In my search for dividend paying tech companies, I looked for both American and Canadian companies with a dividend yield over 1% and a 52 week return of greater than 1%. This last criteria is key because I want to know what companies are actually making money in these turbulent times. Keep in mind that Canadians receive a dividend tax credit for investing in Canadian companies.

The Tech Mega Caps

Intel Corporation (NASDAQ: INTC)

This tech titan has a history of growing dividends for the last 5 years, has a yield of 3.2% and has a 52 week price change of +13.3%. Its P/E ratio of 11.08 is less than its peers. Look for future news on Ultrabooks to move the stock as Ultrabooks represent a possible growth opportunity due to the shift to thin / light notebooks. Ultrabooks are batting Apple’s Macbook line..

IBM (NYSE: IBM)

A major indicator of corporate IT spending, IBM has grown dividends for over 5 years, yields 1.78% and has a 52 week price change of +8.45%. IBM has a P/E ratio of 13.41 which is in line with peers. IBM has had an excellent run over the last few years but has sold off with recent market turmoil. As the general business outlook improves and european fears subside IBM should continue its upward climb.

Microsoft (NASDAQ: MSFT)

A company needing no introduction, Microsoft has been out of favor with investors for some time. It too has grown dividends for over 5 years, yields 2.66% and has a 52 week price change of +12.76%. MSFT has a P/E of 10.94 which is low for a software and services company. Microsoft’s stock was almost stagnant from 2010 to 2011 with little news to excite investors and its rival Apple making all the headlines with iPhones/iPads and the iOS operating system. With Windows 8 around the corner and Surface tablets on the way, investors are starting to take a second look at the company.

Tech Large Cap

InterActiveCorp (NASDAQ: IACI)

Relatively unknown to most investors, InterActiveCorp (IAC) is a big name in the internet business. While it only began paying a dividend in November of 2011 it is in a relatively unique position to be returning money to shareholders as a growth oriented company. Its yield of 1.03% is quite low, however its 52 week price change is +21.3%. With a P/E ratio of 23.25 the stock is not cheap however compared to Amazon’s PE of 181 it looks like a bargain. The industry PE is 39.5 which has been skewed upward by Amazon. it is not unreasonably valued for a growing company especially with year on year quarterly revenue growth of 39%. IAC runs websites such as Ask.com (search), Match.com (dating), Dictionary.com, DailyBurn (fitness), Vimeo (video streaming) and many more.

Tech Small Cap

Computer Modeling Group (TSE: CMG)