Our team has identified five cutting-edge software investments to buy as technology rises again. The list features three funds, a cybersecurity company, and another primed to grow from artificial intelligence and automation. First Trust NASDAQ Technology Dividend Index Fund (TDIV) is one of the diversified names, notes Paul Dykewicz, editor of StockInvestor.com.
We’re showcasing investments that have been climbing as technology stocks recover from a plunge of more than 30% in 2022. Investors who don’t mind volatility may be able to outperform the market by taking the ups and downs of technology stock investing in stride to pursuit potentially strong returns in 2023.
A broader-based tech fund with a higher dividend yield is TDIV. The ETF tries to track the Nasdaq Technology Dividend Index, which is composed of technology and telecommunications companies.
The fund recently had 94 holdings, and its 10 largest positions accounted for 59% of its assets. The biggest weightings were Microsoft (MSFT), Apple (AAPL), Intel (INTC), Broadcom (AVGO) and IBM (IBM). Roughly 13% of the fund was in communication services and the rest fit into the technology sector.
The fund lost 22.1% in 2022, but is up 16.1% so far in 2023, 10.4% during the past three months, and 0.8% over the last 12 months. The stock’s dividend yield recently reached 2.2%.
Recommended Action: Buy TDIV