Just four of the ETF’s top-10 holdings, a group that accounts for 36% of the fund’s weight, yield north of 3% and only Verizon (NYSE: VZ) has a dividend yield over 4%.

The superficial allure of VYM may come by way of its high-yield title, but the stronger reason to consider the ETF is its capacity for dividend growth. The average payout ratio among Apple, Microsoft, Intel and Cisco is less than 41%, according to YCharts data.

Microsoft’s last two dividend increases were 21.7% and 15%, respectively, while Apple’s dividend has grown to 47 cents per share per quarter from less than 38 cents just two years ago. [Tech Dividend ETFs on the Rise]

Vanguard High Dividend Yield ETF

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