Technology for Dividends? Yes

By David Fabian, FMD Capital Management

The technology sector has been a strong area of the market over the last several years and many investors likely have exposure to some of these individual stocks or an associated exchange-traded fund. Companies such as Microsoft Corporation (MSFT), Texas Instruments Incorporated (TXN), Apple Inc. (AAPL), Facebook Inc (FB) and Google Inc (GOOG) are just some of the top names in the tech sector.

The First Trust Nasdaq Technology Dividend Index ETF (TDIV) is an example of a fund that may be attractive for investors looking to add an equity income component to their portfolio. TDIV currently has 95 holdings of technology-related companies with a history of paying dividends. Components within the index are weighted according to their dividend payouts and rebalanced on a quarterly basis.

The end result is a diversified basket of technology and telecommunication stocks with above-average yields. The current 12-month distribution yield on TDIV is 2.8%, based on the past one year of income.

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First Trust Nasdaq Technology Dividend Index ETF (TDIV) is a component of the D2 Capital Management Multi-Asset Income Portfolio. Current yield on the portfolio is 5.55% and year to date the portfolio is up 1.95% compared to the S&P 500 which is up 1.64% (as of 12 February 2015).

Disclosure:  I own the D2 Capital Management Multi-Asset Income Portfolio

The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.