They probably do it because dividends are seen as somewhat obsolete, but firms have to continue paying them because they set a precedent. They are small because they have to be consistent or investors freak out, so the actual earnings aren't distributed anyway. I'd personally rather not have dividends for several reasons:<p>1. the stock price should accurately reflect the earnings of the firm. When a dividend is announced, the price of the stock decreases by the amount of the dividend. If you want some of those earnings, then sell a share. There's no need for the company to issue a dividend. This is a common misconception most people have.<p>2. You're taxed on the dividend payments (exceptions tax deferred retirement accounts). This is annoying, especially if you don't want them now and would rather have them just reinvested. Ignoring taxes, the value to the shareholder is the same regardless of whether dividends are paid or not.<p>My professors in finance all go on long rants against paying dividends, and it really does seem that they're antiquated.  Most newer firms just don't pay dividends, and tech companies just happen to be newer firms usually. It's not necessary a property of just tech companies.