In fact, tech is the largest S&P 500 dividend sector in dollar terms. Along with financials, tech has led S&P 500 dividend growth over the past several years. XLK holdings Apple, Microsoft (NasdaqGM: MSFT) and Cisco (NasdaqGM: CSCO) are among the ETF’s top-holdings that have boosted payouts this year.
Additionally, tech stocks are cheap. XLK has a P/E ratio of 14.5 compared to almost 17.5 for the Consumer Staples Select Sector SPDR (NYSEArca: XLP).
Technology Select Sector SPDR
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple, Google, Microsoft and Cisco.