Many investors often focus on either growth or dividends when deciding which stock(s) to invest into. However, the good news is that some tech stocks also pay dividends and can offer investors a good mix of both capital gains and recurring income.
First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV) is a great ETF that gives investors the opportunity to take advantage of some solid growth stocks while also being able to pad those returns with a modest dividend as well.
Currently, the fund pays investors a dividend yield of about 2.4%. And while there are higher-yielding options out there, few would have grown as much in value as First Trust Nasdaq has. Year to date, the ETF is up more than 22% and over five years it has climbed 50%. The returns are in line with how well the S&P 500 has performed.
Four stocks make up one-third of the fund’s holdings, and those are Intel Corp, Apple Inc, Microsoft Corporation, and Cisco Systems Inc. Those are some of the top tech stocks that investors can hold on the markets, and not only are they stable buys, but they can generate lots of growth over the years as well. In total, 10 stocks make up more than 58% of the ETF’s total holdings.
If you love tech and want dividends, this ETF could give you the best of both worlds without putting your portfolio at much risk. Over the long term, tech stocks are normally a safe option to invest in.
