The One Bright Spot In Apple’s Latest Report Could Lead You To Riches

From 2009 through the end of 2014, the sector boosted payouts by an average 24% a year, according to FTPortfolios. That tops the next sector’s (financials) growth by a hefty seven percentage points.

In sheer dollar terms, AppleMicrosoft Corp. (Nasdaq: MSFT)  and Cisco Systems (Nasdaq: CSCO) are among the largest 15 divided payers in the S&P 500. And smaller tech firms are following their lead.

Over the past 12 months, the tech firms in the S&P 500 paid out $59 billion in dividends.

Consider that tech firms in the S&P 500 held $580 billion in cash at the end of 2015. That means Silicon Valley firms are set to remain at the forefront of dividend stocks.

So are medical-tech leaders. FactSet says healthcare firms led all groups in dividend-per-share increases last year with a 14.5% boost.

It’s a double win for shareholders. With interest rates low, these shares beat what you can get from money-market accounts.

And they protect your portfolio from volatility. MFS Investment Management says dividend stocks are 70% less volatile than earnings over time.

Now, you could choose among the well-known tech dividend stocks – or you could make one pick and forget it.

One Way Into All of Silicon Valley’s Dividends

The First Trust NASDAQ Technology Dividend Index Fund (NYSE: TDIVis a great way to play this trend with a single investment that offers broad diversification.

This exchange-traded fund (ETF) is entirely composed of technology and telecom firms. Specifically, semiconductor firms make up 27.6% of the fund, software firms 15.4%, and telecom 14%.

TDIV has more than $450 million in total net assets spread among a 94 top tech dividend payers. To be included, a stock must have a market cap of more than $500 million and have paid a dividend in the past 12 months.

The 30-day SEC yield of this ETF is currently listed at 2.66% and income is paid quarterly to shareholders. In addition, the expense ratio of TDIV is listed at a modest 0.5% annually, or $50 for every $10,000 invested.

As you’d expect, TDIV pays an annual dividend, currently 96 cents per share, with a 52-week yield of 3.04%. Plus, it has an expense ratio of just 0.5%, meaning you’ll pay just $5 in annual fees for every $1,000 you invest.

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Disclosure: None.

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