Apple’s ascent in any dividend ETF that uses a methodology based on paid cash dividends could come down to how many shares the company has repurchased by the time the new dividend takes effect and when those ETFs rebalance. The company said Wednesday it is aiming to repurchase $90 billion of its own stock by the end of 2015, up from its original target of $60 billion.
At the close of U.S. markets Wednesday, Apple was TDIV’s fifth-largest holding at a weight of 7.81%, trailing Dow components, Intel (NasdaqGS: INTC), Cisco (NasdaqGS: CSCO), Microsoft (NasdaqGS: MSFT) and IBM (NYSE: IBM). [ETFs for Cisco’s Surge]
The tech is one of largest contributors to S&P 500 dividend growth over the past few years and TDIV is among the ETFs that have capitalized on that trend. With Wednesday’s announcement, Apple’s dividend has increased 24% in two years. Cisco’s payout has tripled in three years. Microsoft’s dividend has more than doubled in less than four years. [Tech ETFs Become Dividend Divas]
First Trust NASDAQ Technology Dividend Index Fund
