Due to the technology sector's burgeoning status as destination for income investors, some of the sectors dividend-paying members are becoming more prominent in dividend-focused ETFs. Predictably, ETF and dividend investors alike want to know when Apple Inc. (NASDAQ:AAPL), which earlier this year announced its first payout since 1995, will join dividend funds.
At least one ETF issuer is providing an answer. WisdomTree Investments, Inc. (NASDAQ:WETF) today announced the results of its annual index rebalancing, noting that Apple Inc. (NASDAQ:AAPL) will make its way into several of the issuers dividend-focused funds later this month.
One of the indexes that has been rebalanced is the WisdomTree Dividend Index (WTDI), the index tracked by the $268.4 million WisdomTree Total Dividend Fund (NYSEARCA:DTD). At the close of trading on December 21, Apple Inc. (NASDAQ:AAPL) will become DTD's third-largest holding at a weight of just over three percent.
The WisdomTree LargeCap Dividend Index (WTLDI), the index tracked by the WisdomTree LargeCap Dividend Fund (NYSEARCA:DLN), will also make room for Apple on December 21. The iPad maker will become the index's third-largest holding behind Exxon Mobil Corporation (NYSE:XOM) and AT&T Inc. (NYSE:T). Apple Inc. (NASDAQ:AAPL) will have a weight of almost 3.6 percent in that index.
DLN, which has almost $1.3 billion in assets under management, has a distribution yield of 6.86 percent, according to WisdomTree data.
Given the rise of technology names as dividend payers, it is not surprising to see these stocks, Apple Inc. (NASDAQ:AAPL) included, take on more prominent roles in dividend ETFs.
"Information Technology sector dividends have grown a remarkable 172.18% since November 30, 2007. At the prior peak, this sector comprised only about 5.6% of the dividend stream, whereas now it comprises more than 13% and is the third-largest dividend-paying sector behind Consumer Staples and Financials," said WisdomTree Research Director Jeremy Schwartz in a note.