Conventional wisdom holds that tech companies that become dividend payers are telling investors they have nothing better to do with their cash. However, large cash hoards and rising dividends are nice problems to have. Those traits have made dividend payers out of the likes of Microsoft (NasdaqGS: MSFT), Intel (NasdaqGS: INTC), Cisco (NasdaqGS: CSCO) and Apple (NasdaqGS: AAPL).
Along with IBM, those stocks combine for about 41 percent of TDIV’s weight. No ETF is perfect, but TDIV offers better compensation than XLK’s 1.75% yield and a safe place to be if the market continues to lose affection for low-beta sector ETFs.
First Trust NASDAQ Dividend Technology Index ETF
ETF Trends editorial team contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of AAPL, CSCO and AAPL.