Dividend News – Tech Dividends, Payout Ratios and Beyond Utilities

January 13, 2012 · 0 comments

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:

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