These 3 Dividend ETFs Own Nvidia and Microsoft and Still Pay Up to 8 Percent

Income investors have historically faced a tradeoff: reach for yield in utilities, REITs, and tobacco names, or own the mega-cap technology stocks driving the market and settle for the sub-1% dividends they pay. A newer crop of dividend and derivative-income ETFs is trying to close that gap by pairing exposure to NVIDIA and Microsoft with distribution yields ranging from the low single digits to nearly 11%. Three funds stand out for how they do it: Fidelity High Dividend ETF (NYSEARCA:FDVV), First Trust Dividend Strength ETF (CBOE:TDVI), and Amplify CWP Growth & Income ETF (NYSE:QDVO).

Each takes a different route, as FDVV leans on a broad basket of high yielders anchored by a technology overweight. TDVI concentrates on mature tech and semiconductor names with established payout histories. QDVO writes call options against a portfolio of the largest growth stocks in the market, letting premium income supplement modest underlying dividends.

Fidelity High Dividend ETF (FDVV)

Those weightings sit next to classic income names, including JPMorgan Chase, Coca-Cola, Procter & Gamble, Altria, McDonald’s, and Realty Income. The fund also carries meaningful utility and REIT exposure through positions like Duke Energy, NextEra Energy, Prologis, and Simon Property Group. The mechanism connecting FDVV to the theme is the index rule set: mega-cap tech names that have grown into their yield through buybacks and rising payouts qualify on the same footing as legacy income sectors.

Net assets stood at roughly $9.18 billion, and the most recent quarterly distribution was $0.519 per share, up from $0.44 the prior quarter. Trailing twelve-month payouts totaled $1.729, working out to a distribution yield near 2.8% at the recent price of about $63. FDVV is up roughly 12% year to date and 19% over the past year.

The tradeoff is straightforward. FDVV pays the lowest headline yield of the three, so investors seeking maximum income will find it wanting. What they get in return is total-return exposure that behaves more like a diversified large-cap fund than a yield trap.

First Trust Dividend Strength ETF (TDVI)

NVIDIA is not currently a top holding in TDVI’s most recent NPORT filing, so the fund captures the AI and chip ecosystem through equipment makers, foundries, and infrastructure suppliers rather than the highest-multiple pure play. That is the mechanism worth understanding: dividend-paying semiconductor companies benefit from the same capital cycle driving NVIDIA higher, and they pass more cash back to shareholders while doing it.

The fund pays monthly. Recent distributions have ranged between $0.18 and $0.21 per share, with the July 21, 2026 ex-date payment of $0.1977. Trailing twelve-month distributions came to $2.2969, which translates to a yield of roughly 7.8% against the recent price of about $29. TDVI is up roughly 12% year to date.

The fund also runs a small short call position on the S&P 500, indicated by the SPXW 260501C07165000 line item, which suggests some option-income enhancement layered on top of the equity portfolio. At roughly $418 million in net assets, TDVI is far smaller than FDVV. Concentration in a handful of chip names means a semiconductor drawdown would hit this fund harder than a broader dividend index.

Amplify CWP Growth & Income ETF (QDVO)

For the income-first buyer, QDVO is the standout and the most explicit answer to the question in the headline. The top of the portfolio reads like a growth ETF: NVIDIA near 11%, Apple near 10%, Microsoft around 8%, Alphabet around 7%, and Amazon around 6%. Broadcom, Tesla, Meta, Visa, and AMD follow. The fund charges 0.55%.

The income comes from writing call options against these holdings rather than from the dividends they pay. Capital Wealth Planning, the sub-adviser, overlays a covered-call program that generates option premiums, which are distributed monthly. The mechanism is the tradeoff: shareholders collect current income in exchange for capping some of the upside when the underlying names rally sharply.

Monthly distributions in 2026 have ranged from $0.236 to $0.282 per share. Trailing twelve-month distributions totaled $3.12, producing a distribution yield near 11% at the recent price of about $29. Year-to-date price return sits at roughly 5%, well below FDVV and TDVI, which reflects the covered-call cap on appreciation during a strong equity year.

A portion of the QDVO distribution may be classified as return of capital in some periods, and total return over a full cycle depends heavily on how the option-writing strategy performs against underlying rallies.

Choosing Between the Three

The three funds fit different investor profiles. FDVV suits an investor who wants exposure to NVIDIA and Microsoft inside a diversified dividend framework and does not need a large current payout. Total return is the priority, and the yield is a secondary consideration.

For someone who wants a monthly check backed by mature dividend payers concentrated in the semiconductor and enterprise software supply chain, TDVI fits the bill. The 8% neighborhood yield comes with real sector concentration and no direct NVIDIA position, so buyers are betting on the ecosystem rather than the flagship name.

If you want the highest current income and are comfortable trading upside for premium, QDVO is the choice. It owns NVIDIA and Microsoft in size, but the payout is manufactured through options rather than harvested from corporate dividends, and the strategy behaves differently in a runaway bull market than a plain equity fund would.

Contact [email protected] for any questions or corrections.