June 14, 2024


The Joy of Technology

A Fund Featuring Dividend-Paying Tech Stocks


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It may surprise you that in 2021, the engineering sector was the most significant payer of dividends amongst sectors in the S&P 500 Index, in accordance to expense research firm CFRA.

Tech stocks contributed far more than 17% of the all round revenue for the wide-market place benchmark. That’s additional than the contribution from health care (15%), financials (14%) and purchaser staples (11%), notes CFRA.

And still, many trade-traded resources that devote in organizations with a observe file of hiking dividends have somewhat confined publicity to tech. The ProShares S&P 500 Dividend Aristocrats (NOBL), for illustration, which tracks an index necessitating firms to have posted at the very least 25 consecutive yrs of dividend raises, retains 1.5% of assets in tech, compared with 22% in client staples.

The ProShares S&P Technological know-how Dividend Aristocrats (TDV) holds 77% of property in tech shares. Tracking an index that requires a minimal of just 7 years of dividend hikes will allow the fund to household in on tech names with the wherewithal to constantly return funds to shareholders. Holdings are equally weighted, so behemoths with giant market place values are not able to dominate. The 40 shares in the portfolio assortment from household names such as Apple (AAPL) and Broadcom (AVGO) to drinking water-meter manufacturer Badger Meter (BMI) and pet pharmacy PetMed Convey (Pets).

The ETF, yielding 1.2%, may possibly be worth a appear by dividend investors who want to equilibrium out sector publicity or by tech investors who desire the cushion of a dividend in an usually-unstable sector.

Proshares S&P Technology Dividend Aristocrats ETF stats

Proshares S&P Engineering Dividend Aristocrats ETF stats

Sources: CFRA, fund sponsors, Morningstar Immediate, Yahoo Finance

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