Dividend Growth Potential Found in Surprising ETFs
From Nasdaq.: 2024-05-10 09:20:43
The Nasdaq-100 Index traditionally has a low dividend yield, but with Alphabet and Meta Platforms now paying dividends, eight of the top 10 holdings in QQQ and QQQM offer payouts. Tech stocks are gradually embracing dividends, with potential for future growth in payouts seen as attractive by investors.
Despite traditionally low yields in the tech sector, some QQQ and QQQM holdings have shown significant dividend growth potential over the long term. Companies like Microsoft, Apple, and Broadcom have demonstrated their ability to increase payouts over time, making them attractive to investors focused on dividend growth.
Investors seeking long-term dividend growth potential may find QQQ and QQQM particularly appealing, as these ETFs are not heavily focused on tech and large-cap stocks. Unlike funds that prioritize payout increase streaks for inclusion, QQQ and QQQM provide exposure to companies like Alphabet and Meta Platforms that are now dividend payers.
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