TDIV: High-Dividend Yields Come From The Tech Sector Too

Many high dividend ETFs load up on utilities and consumer goods companies to generate income. While many of these stocks come with above average yields, these sectors are also getting stretched from a valuation perspective putting investors at risk for losing principal. It might be wise for investors to begin searching for other sources of income outside of these conservative, yet overpriced sectors. One intriguing option comes from a sector that isn't normally thought of as a high dividend area: technology.

 

The First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV) focuses on technology and telecom companies that have paid and not decreased their dividend in the past 12 months and yield at least 0.5%. It's a relatively low bar to clear but historically the fund has done a much better job in delivering income to investors. The fund currently yields 2.9%, well above the S&P 500 (NYSEARCA:SPY) yield of 2.1%.

Click the button below to read the rest of this original article on Seeking Alpha.

ETF Research

We cover ETFs across all sectors, regions and markets. We analyze the portfolios themselves as well as the macro environments that affect them.

Mutual Fund Research

We do mutual fund research too! Although not covered quite as in-depth as the ETF world, we've still profiled many of the big names!

Investing Strategy

Everything from retirement planning to 401(k) investing to options trading strategies and everything in between!

Next Steps...

Got a question? A comment? A fund you want to see profiled? Let us know!

Subscribe to receive the ETF Focus Weekly newsletter absolutely FREE!

* indicates required

Be the first to comment

Leave a Reply

Your email address will not be published.


*