TDIV - TDIV: Is The Tech Dividend Boom About To End?

March, 07 2023 12:10 AM First Trust NASDAQ Technology Dividend Index Fund

2023-03-07 00:10:41 ET

Summary

TDIV selects up to 100 U.S.-listed dividend-paying stocks in the Technology and Communications sectors. Its expense ratio is 0.50%, and it increased dividends by 8.46% over the last five years.
The focus is dividend growth, not dividend yield. However, expected sales and earnings growth is just 6% over the next twelve months. High dividend growth is unsustainable.
TDIV also has weak earnings momentum and poor Wall Street sentiment. With a 21.3x forward earnings valuation and a low 2% expected dividend yield, it's unappealing.
I don't recommend TDIV stock but will compare its fundamentals alongside TDV, another dividend-focused fund worth exploring.

For further details see:

Company Name:	First Trust NASDAQ Technology Dividend Index Fund
Stock Symbol:	TDIV
Market:	NASDAQ