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The Undercovered Dozen spotlights 12 lesser-followed stocks featured on Seeking Alpha from Oct. 10 to Oct. 16. This curated series aims to surface overlooked investment ideas and foster discussion among sophisticated investors. Readers are encouraged to engage, debate, and share additional undercovered stock ideas in the community.
AI and chip stocks are turning into dividend growers, and popular dividend ETFs like FDVV already hold names such as Nvidia, Microsoft, Broadcom, and Alphabet among their top holdings. Free cash flow is fueling the raises: Nvidia produced $48.6B in a single quarter and lifted its dividend from $0.01 to $0.25, while Broadcom keeps almost half of every sale. TDIV and TDV give investors technology-heavy dividend growth in one fund, with TDIV growing its total payout 48.6% over five years and TDV raising its dividend 23% over the last five years.
TDIV offers superior exposure to AI-driven tech growth vs. TDV, with broader holdings and higher direct AI ecosystem exposure. TDIV's portfolio is cheaper on forward P/E (16.1x vs. 16.9x) and has higher long-term earnings growth (14.6% vs. 12.6%) than TDV. Nearly 60% of TDV's portfolio overlaps with TDIV, making dual ownership redundant; TDIV captures most of TDV's strengths without its weaknesses.
Designed to provide broad exposure to the Technology ETFs category of the market, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund launched on 11/05/2019.
Dividend growth investing rewards patience with a real income raise year after year, but not every fund in the category delivers that promise the same way.
The ProShares S&P Technology Dividend Aristocrats ETF is a buy for quality-focused dividend growth investors seeking robust, long-term dividend growth in tech. TDV's equal-weighted portfolio of 38 tech dividend growers offers higher quality, lower volatility, and strong free cash flow growth, but a modest ~1% yield. AI infrastructure-driven cash flow growth in semiconductors and hardware underpins TDV's dividend growth prospects for the next 3–5 years.
A smart beta exchange traded fund, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) debuted on 11/05/2019, and offers broad exposure to the Technology ETFs category of the market.
The ETF landscape includes a wide variety of innovative, intriguing funds that look to meet investor goals. From equities to fixed income, all kinds of strategies offer intriguing spins on areas like income and dividends.