Tech’s increased credibility as a legitimate dividend destination also boosts the allure of ETFs like IYW. In 2014, the average dividend increase from Apple, IBM, Cisco (NasdaqGS: CSCO) and Qualcomm (NasdaqGS: QCOM) was 14%. Importantly, the tech sector has ample room for dividend growth.
“Some industry-leading companies have been hoarding cash. Consider that four information-age bellwethers―Apple, Microsoft, Google and Cisco―possess a combined $345 billion in cash. And the overall tech sector holds more than half of total corporate cash reserves in the U.S.,” adds Richardson. “With strong balance sheets, these companies are well-positioned to deliver returns through share repurchases, dividend increases and mergers and acquisitions.”
The $4.5 billion IYW has a trailing 12-month yield of 1.13%.
iShares U.S. Technology ETF
Tom Lydon’s clients own shares of Apple.
