ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Nasdaq Portfolio Solutions Channel
  2. Transform to TDIV for Dependable Dividends
Nasdaq Portfolio Solutions Channel
Share

Transform to TDIV for Dependable Dividends

Tom LydonMar 15, 2022
2022-03-15

As has been widely reported, domestic dividends hit all-time highs last year, rebounding from the dark days of cuts and suspensions caused by the onset of the coronavirus pandemic in 2020. More positive dividend news is expected this year, putting a variety of related exchange traded funds in the spotlight.

That group includes the First Trust NASDAQ Technology Dividend Index Fund (TDIV A-). TDIV tracks the NASDAQ Technology Dividend Index. While it focuses on technology stocks, TDIV offers investors inroads to potentially lengthy dividend growth.

Indeed, there was a time when equity income investors scoffed at the notion of tech stocks as dividend plays, but in the case of tech dividends, times are changing for the better.

In 2021, “technology dividends continued their steady rise, up 5.4% on an underlying basis, though lower one-off special payments meant that the headline total was flat year-on-year at $91.2 billion,” according to the latest reading of the Janus Henderson Global Dividend Index.

The research firm notes that in the U.S., the financial services and healthcare sectors combined for nearly a third of dividends paid from 2017 through 2021. Underscoring the case for TDIV, technology chipped in 17% of domestic dividends over that span. On a percentage basis, only financial services at 19% was ahead of tech.

“The median, or typical, dividend increase on a per share basis was 8.0%, however. Technology dividends have been the biggest driver of long-term growth, accounting for a quarter of the increase in US payouts in the last ten years,” notes Janus Henderson.

Proving that dividends are taking off in the tech sector, TDIV is home to 91 stocks, which is a healthy roster size for an ETF dedicated to dividend stocks in a sector previously not known for payouts. Integral to the TDIV story is that perhaps more so than some other sectors, tech is loaded with cash-rich companies that can easily support and grow payouts over the long haul.

Among the top 15 U.S. dividend payers in dollar terms are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Verizon (NYSE:VZ). That trio combines for 17.4% of TDIV’s roster. TDIV’s 12-month distribution rate of 1.92% implies ample room for growth.

“In 2021 technology payouts were more than four times larger than in 2011, increasing their share of the US total from one tenth to one sixth,” adds Janus Henderson.

For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X