Technology Sector Stands Out for Income
Dividend-seeking equity investors ought to expand their search beyond traditional high-yielding sectors such as telecommunications and utilities.
In particular, the technology sector can be an attractive source for income and capital appreciation potential. Many large technology firms offer sizable and growing dividends, strong balance sheets, and reasonable valuations. In fact, the technology sector is now the largest contributor of dividends to the S&P 500.
Furthermore, the technology sector stands to benefit from a potential increase in corporate capital expenditures. Stocks on the Hefren-Tillotson Focus List include Intel (INTC 2.6% yield) and Cisco (CSCO 3.1%). For a diversified approach, we favor the First Trust NASDAQ Technology Dividend Index Fund (TDIV 2.5%).