Companies paid out $161.5 billion to their investors last quarter. Here’s how to get your share of that dividend income.

Companies are making a lot of money these days. Many choose to return a portion of their profits to investors by paying dividends. US corporations paid out $161.5 billion in dividends in the second quarter, an 8.6 percent increase over the year-ago period.

Anyone can have a slice of it dividend income. All you have to do is buy shares of a company that Check out DIVIDENDS. Here’s a look at some of the top options.

Top dog in dividends

The titan of technology Microsoft (MSFT 0.84%) was the top US dividend payer last quarter. The company behind the Windows operating system, Xbox and other technology products and services paid out $5.6 billion to its investors. in dividends during the second trimester. This was the largest payout among US corporations and the seventh largest globally.

Anyone can invest in Microsoft stock. The shares are currently trading at just over $400 apiece. Buying a share entitles investors to receive $0.75 per share in dividends each quarter ($3.00 annually). This payout rate gives Microsoft about 0.7% dividend yield at the recent share price. In other words, every $1,000 you invest in Microsoft stock will generate about $7 in annual dividend income.

Microsoft has a knack for growing its dividend. It gave investors a 10% raise last September. The tech giant has increased its pay every year for more than a decade. Given its investments in high-growth sectors such as cloud computing and artificial intelligence (AI), the company should be able to continue growing its dividend in the future.

Joining the club

While Microsoft has been paying dividends for over a decade, others in the tech sector are relative newcomers. Look for the giant Alphabet (GOOG 1.82%) (GOOGL 1.79%) and the social media giant Meta platforms (META -0.19%) have initiated dividends in the past year. Meta Platforms, the parent company of Facebookinitiated a quarterly dividend of $0.50 per share in February, while Alphabet (owner of Google) followed suit with its first quarterly dividend of $0.20 per share in April. Technology companies combined to pay almost 4 billion dollars in dividends in the second quarter.

The tech duo currently has low dividend yields. Meta is about 0.4% at a share price above $500, while Alphabet is slightly higher at about 0.5% at a share price of $150. At this rate, you can earn about $4 in dividend income each year for every $1,000 invested in Meta stock, and about $5 every year from Alphabet.

However, what these tech giants lack in yield, they will likely make up for in growth. They could follow Microsoft by delivering double-digit annual dividend growth in the coming years, supported by their investments in new technologies such as AI.

A large income stream

Those looking to collect more dividend income have plenty of options. Many high-quality companies offer high dividend yields. For example, most real estate investment trusts (REITs) currently offers dividend yields of around 4% (compared to less than 1.5% for the average stock).

Real estate income (A 0.48%) it is one of the best REITs for dividend income. The owner of independent retail, industrial and gaming properties has paid out more than $14.1 billion in dividends over its history, including $2.1 billion last year. It is on the way pay approx $2.5 billion in dividends this year.

The REIT makes monthly dividend payments of $0.263 per share ($3.156 annually). With its share price currently at $60, the REIT offers a dividend yield of about 5%. That means you could collect about $50 in dividend income each year for each Invest $1,000 in REITs.

The revenue stream is likely to grow at a steady rate in the future. Realty Income has increased its dividend 126 times since going public in 1994, including the past 107 consecutive quarters. The REIT has grown its payout at a compound annual rate of 4.3% over that time frame. With a strong balance sheet and a long growth track (there is trillions of dollars in commercial real estate all around the world), should have no problem continuing to put more income in investors’ pockets each year.

Take your slice of the income pie

Companies make a lot of money every year. They typically return a percentage of their profits to their shareholders through dividend payments. You can easy become an investor by opening a brokerage account and buying shares of a company that pays dividends. This would allow you to collect a small a portion of the dividend income they pay out to investors each year.

This income stream can grow as these companies increase their payouts and you buy more shares of dividend-paying stocks. And increasing dividend income can ultimately help you enjoy a more comfortable retirement.