S&P Capital IQ has an overweight rating on the tech sector at large, saying it”thinks component companies have very strong balance sheets that increasingly will be used to pursue value-added R&D, M&A, buybacks, dividends and debt retirement.”

The tech sector has been one of the leading sources of S&P 500 dividend growth over the past several years. However, because dividend growth in the sector is a relatively new phenomenon, many ETFs that focus on dividend increase streaks are light on tech exposure.

Investors can grab pure play exposure to rising tech dividends via the First Trust NASDAQ Technology Dividend Index Fund (NasdaqGM: TDIV). Proving the potency of dividends and tech under one umbrella, TDIV has amassed $408 million in assets in just 20 months of trading. [Dividend Growth With ETFs]

Technology Select Sector SPDR

Tom Lydon’s clients own shares of Apple, Google and Facebook.

 

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