What Mainstay Capital's $94.8M Bet on TDIV Signals About AI-Powered Tech Dividends

A recent SEC filing reveals that Mainstay Capital Management took a decisive move into the dividend-focused tech space, acquiring nearly 962,000 shares of the First Trust NASDAQ Technology Dividend Index Fund (TDIV) in a transaction valued around $94.84 million. This positions the ETF as the fund’s second-largest holding, signaling serious conviction in a specific market opportunity.

The Trade That Turned Heads

Mainstay Capital Management’s December 2025 filing shows they’re now holding 961,923 TDIV shares worth $94.84 million—representing 9.51% of their 13F reportable assets under management as of Q3 2025. To put this in perspective, only one other position (NYSEMKT:SPMO at $165.16 million) outranks it in their portfolio.

The timing matters. At the close of trading on December 9, 2025, TDIV was priced at $100.91, reflecting a robust 26.5% gain over the trailing twelve months—crushing the S&P 500’s performance by a 13.13 percentage point margin. Meanwhile, the fund’s annualized dividend yield sits at 1.30%, providing steady income alongside capital appreciation.

Why TDIV Now?

The ETF itself is straightforward: it tracks the NASDAQ Technology Dividend Index, holding up to 100 technology and telecom equities that regularly distribute dividends to shareholders. With $3.7 billion in assets under management and a passively managed, rules-based structure, TDIV offers clean sector exposure without constant trading churn.

But here’s where Mainstay Capital’s move becomes interesting. The firm appears to be betting on two converging trends: the technological transformation driven by artificial intelligence adoption worldwide, combined with the stable income generation that dividend-paying tech stocks provide. As enterprises and governments accelerate AI implementation, companies in this index—particularly those large and mid-cap issuers maintaining dividend payments—stand positioned to benefit from both operational growth and investor demand for income.

The Broader Portfolio Context

Mainstay’s top holdings paint a clear picture of their strategy:

• NYSEMKT:SPMO: $165.16 million (16.6% of AUM)
• NASDAQ:TDIV: $94.84 million (9.5% of AUM)
• NYSEMKT:SPYG: $83.61 million (8.4% of AUM)
• NYSEMKT:QGRO: $73.66 million (7.4% of AUM)
• NYSEMKT:CGDV: $70.99 million (7.1% of AUM)
• NYSEMKT:GDE: $66.13 million (6.6% of AUM)

The concentration in dividend-focused ETFs and specialty sector plays suggests Mainstay Capital is building a portfolio tailored to income generation with selective growth exposure—not broad market index tracking.

The Investment Case for TDIV Today

Mainstay’s substantial allocation raises an important question: Is this the right entry point for retail investors?

The bull case is compelling. TDIV’s focus on dividend-paying technology and telecom stocks aligns with long-term secular trends. The AI boom isn’t a one-quarter story; it’s reshaping corporate economics across both sectors for years to come. Companies that maintain dividend discipline while benefiting from AI tailwinds offer the ideal combination of growth and yield.

However, concentration risk exists. Technology and telecommunications sectors experience significant volatility during market rotations and economic uncertainties. While dividend stocks tend to hold up better during downturns, they’re not immune to sector-specific shocks. Additionally, dividend sustainability varies—companies can and do cut payouts when earnings weaken, as seen during economic disruptions like the COVID-19 pandemic.

Current Valuation Snapshot

As of mid-December 2025, TDIV shares trade 2.18% below their 52-week high, suggesting the rally has cooled slightly from its peak. The 26.5% annual return, while impressive, reflects both strong performance and elevated investor expectations.

The Bottom Line

Mainstay Capital Management’s decision to allocate $94.84 million to TDIV signals institutional confidence in dividend-paying technology stocks during an AI-driven transformation. Their positioning as a top-two holding demonstrates commitment to the thesis. For investors seeking technology exposure without sacrificing current income, TDIV deserves serious consideration—particularly those with a multi-year investment horizon who can tolerate sector volatility while capturing dividend distributions and potential capital appreciation from structural tailwinds.

The fact that a sophisticated institutional player like Mainstay Capital moved this decisively suggests the opportunity window remains open, even as market enthusiasm for AI-adjacent plays continues to mature.