In addition to its exposure to companies with pristine balance sheets, IGM also features robust exposure to companies that are actively increasing shareholders rewards. Apple and International Business Machines (NYSE: IBM), 4.5% of IGM’s weight, were two the largest repurchasers of their own shares in the second quarter.
Apple, IBM, Microsoft, Cisco Systems (NasdaqGS: CSCO) and Qualcomm (NasdaqGS: QCOM) are among the most impressive dividend growers in the tech sector. The average payout increase from Apple, IBM, Cisco and Qualcomm this year is almost 14%. Those stocks combine for 28.3% of XLK’s weight. That does not include an increase from Microsoft, which XLK’s second-largest holding usually delivers in the second half of the year. Microsoft’s last two dividend increases were 21.7% and 15%, respectively. [Rising Tech Dividends Boosts ETFs]
Those five stocks combine for about 28% of IGM’s weight.
iShares North American Tech ETF
Tom Lydon’s clients own shares of Apple and QQQ.