ETF investors can also utilize the First Trust NASDAQ Technology Dividend Index Fund (NasdaqGS: TDIV) to focus on some of the top dividend payers in the tech space. TDIV has a 2.65% 12-month yield.
TDIV includes some criteria for inclusion to make sure tech companies meet the dividend cut. For instance, the ETF only includes companies with at least a 0.5% yield and those that have not cut dividends per share paid within the past year.
Top components in the tech dividend ETF include well-known names like Cisco 8.3%, International Business Machines (NYSE: IBM) 8.2%, Microsoft 8.2%, Intel (NasdaqGS: INTC) 7.1% and Apple (NasdaqGS: AAPL) 7.0%.
The tech ETF is also diversified across its sub-sectors and includes some telecom exposure. TDIV has 20.3% in semiconductors, 16.5% telecom services, 15.8% software, 15.2% tech hardware, 14.5% communications equipment, 9.5% IT services, 4.8% wireless telecom services, 1.5% electronics and 1.0% household durables.
Potential investors, though, should be aware that these dividend tech stocks may underperform during a bull rally when tech growth stocks outperform.
Max Chen contributed to this article.