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Dividend Investors Are Overlooking this Sector

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%).

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DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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