I came across a USAToday article that had some interesting tidbits on dividend stocks which we’ve all come to know and love. Here are a few notes I found worth passing on:
- Over the past 20 years, the S&P500 has gained 202%. Add in dividends paid though and the return is actually 350%. That’s saying something about dividend returns as function of total return!
- Utilities stocks, usually prized for their high yields… tend to trade at a discount to the S&P500. But at the moment, they’re actually trading at a premium! You may want to watch this sector if chasing yield, as you might feel it on the capital loss side.
- They warn against high yield stocks in excess of 6%. I say it’s sector-dependent (i.e. tobacco and Master Limited Partnerships often yield north of 6% and keep on running).
- I don’t normally think of Tech companies as paying a suitable dividend at all, but here are the top 5 largest tech companies paying dividends – not too bad for Intel and Microsoft!
| Company, ticker |
Dividend yield
|
Total return
(1 year) |
| Microsoft, MSFT |
2.89%
|
1.2%
|
| IBM, IBM |
1.65%
|
25.9%
|
| Oracle, ORCL |
0.89%
|
-12.4%
|
| Intel, INTC |
3.26%
|
26.9%
|
| Cisco, CSCO |
1.26%
|
-7.3%
|
Now that you’ve digested some tidbits on dividends, check out these carnivals for tons of investing articles from around the blogosphere:
Self-Directed Investing Carnival
Carnival of Financial Comraderie
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