As has been previously noted, tech’s value allure is bolstered by the sector’s burgeoning reputation for dividend growth. In 2014, the average dividend increase from Apple, IBM (NYSE: IBM), Cisco (NasdaqGS: CSCO) and Qualcomm (NasdaqGS: QCOM). Those stocks combine for 31.5% of IYW’s weight. [Embracing Old Tech ETFs]
Last week, Apple, which has $178 billion in cash, said it will sell $6.5 billion of high-grade corporate debt to, in part, fund more buybacks and dividends. Apple’s annual dividend has risen 25% on a cumulative basis since returning in 2012. [Apple Dividends in This ETF]
Combined, Apple, Microsoft (NasdaqGS: MSFT), Cisco and Google (NasdaqGS: GOOG) have close to $345 billion in cash. Alone, Apple has $178 billion, more than the market values of all but a scant amount of S&P 500 member firms.
iShares U.S. Technology ETF
Tom Lydon’s clients own shares of Apple and Microsoft.