Rise of Tech Dividends a Boon for ETFs

Investors have embraced the ETF in a big way this year, sending it up 12.3% while plowing almost $268 million into the fund. That is 44% of the ETF’s current assets under management total.

TDIV tracks the NASDAQ Technology Dividend Index, which has a dividend yield of 3.3%. That is well above what investors normally expect of the tech sector and that yield comes by virtue of a mandate that states the index hold at least 20% of its weight in telecom stocks.

So while TDIV offers leverage to the dividend growth of companies like Apple and Microsoft, it is also features the decades-long dividend growth steady payers like AT&T (NYSE: T) and Verizon (NYSE: VZ). [ETFs With Safe Dividend Stocks]

First Trust NASDAQ Technology Dividend Index Fund

Tom Lydon’s clients own shares of Apple and Microsoft.