Rising payouts are another reason to consider tech ETFs. Traditionally, tech companies have not considered paying back their investors. Instead, many firms opted to reinvest cash back into the company or buy back stocks. However, times are changing, and the technology sector of the S&P 500 is now among the top dividend issuers. Technology companies began to compensate shareholders during the financial crisis, and the habit stuck.
Looking ahead, growing optimism for the upcoming earnings season is also fueling the rally in tech as many market observers anticipate a turnaround in corporate profits. Historically, after a profit falloff, the technology sector has been among the best areas in a rebound.
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