TDV: A Fund Featuring Dividend-Paying Tech Stocks
It may surprise you that in 2021, the technology sector was the largest payer of dividends among sectors in the SP 500 Index, according to investment research firm CFRA. SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022 Tech stocks contributed more than 17% of the overall income for the broad-market benchmark. That''s more than the contribution from healthcare (15%), financials (14%) and consumer staples (11%), notes CFRA. And yet, many exchange-traded funds that invest in companies with a track record of hiking dividends have relatively limited exposure to tech. The ProShares SP 500 Dividend Aristocrats ( NOBL ), for example, which tracks an index requiring firms to have posted at least 25 consecutive years of dividend increases , holds 1.5% of assets in tech, compared with 22% in consumer staples. The ProShares SP Technology Dividend Aristocrats ( TDV ) holds 77% of assets in tech stocks. Tracking an index that requires a minimum of just seven years of dividend hikes allows the fund to home in on tech names with the wherewithal to consistently return cash to shareholders.
TDV: A Fund Featuring Dividend-Paying Tech Stocks
It may surprise you that in 2021, the technology sector was the largest payer of dividends among sectors in the SP 500 Index, according to investment research firm CFRA. SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022 Tech stocks contributed more than 17% of the overall income for the broad-market benchmark. That''s more than the contribution from healthcare (15%), financials (14%) and consumer staples (11%), notes CFRA. And yet, many exchange-traded funds that invest in companies with a track record of hiking dividends have relatively limited exposure to tech. The ProShares SP 500 Dividend Aristocrats ( NOBL ), for example, which tracks an index requiring firms to have posted at least 25 consecutive years of dividend increases , holds 1.5% of assets in tech, compared with 22% in consumer staples. The ProShares SP Technology Dividend Aristocrats ( TDV ) holds 77% of assets in tech stocks. Tracking an index that requires a minimum of just seven years of dividend hikes allows the fund to home in on tech names with the wherewithal to consistently return cash to shareholders.