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8/3/2019 Economic Snapshot: Dividends still a popular option
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LOCAL ECONOMIC SNAPSHOT | INVESTMENTS
Dividends still a popular optionBy WILL DEENERSpecial Contributor
KYLE ALCOTTStaff Artist
Investors are continually looking for ways to increase their income, particularly the 78 millionsoon-to-be-retiring baby boomers. That’s why cash paid to company shareholders in the form of
dividends is becoming an increasingly popular way to supplement income. While two vicious bear markets in the past decade have turned many investors against stocks, companies that pay consistentdividends remain attractive to many investors.
Biggest U.S. dividend payers
“Savvy investors are moving toward
dividend-paying stocks because they
want the income, but it’s more than
that. The stock price of a company
that pays a consistent dividend over
many years is not as volatile. The
dividend works like an
anchor. The stock
price may not go
up as much in
good times, but
it doesn’t go
down as much in
bad times.”
“The farther out I look, the better the
story looks for high dividend-paying
stocks. They are the ones that people
want to own if they are going to be
able to pay their bills in retirement. It is
just not that complicated. You can’t
get a decent yield from U.S. Treasuries
or most corporate
bonds, and
inflation still
exists so there is
no real return
there.”
“It’s nice to see investors embracing
dividend-paying stocks again.
Historically, dividends have accounted
for more than half of the stock
market’s annual returns. Dividends fell
out of favor during the technology
bubble of the late 1990s, but now
investors are
scrambling to
find good,
consistent
dividend
payers.”
The bottom line
Howard Silverblatt, senior indexanalyst at Standard & Poor’s Josh Peters, director of equity incomestrategy at Morningstar Will Deener, special contributor,The Dallas Morning News
The following companies are the largest dividend payers
by dollar amount. The dividend yield is calculated by
dividing the amount of dividend paid per share by the
stock price. The annual dividend yield of the S&P 500 is
currently 2.2 percent.
Higher yields in our backyardDallas-Fort Worth companies, on average, pay a higher dividend yield than companies do nationally. This chart shows the
dividend yield for Dallas-Fort Worth companies vs. the Standard & Poor’s 500 and the Russell 5000 over 15 years.
Dividend yield by industry sectorWhile about three-fourths of the companies in the
Standard & Poor’s 500 Index pay dividends, the amount
varies widely.
Highest dividend payers in TexasInvestors looking for consistent dividend-paying stocks
have a broad variety of companies to choose from inDallas-Fort Worth and throughout the state. The dividend
yields of some of the most well-known Texas companies:
AT&T
Exxon Mobil
General Electric
Pfizer
Microsoft
Chevron
Johnson & Johnson
Procter & Gamble
Verizon
Philip Morris
Merck
Wal-Mart
Intel
Coca-Cola
JP Morgan Chase
IBM
ConocoPhillips
Altria Group
PepsiCo
Abbott Labs
5.8%
2.2%
3.8%
4.1%
3.1%
3%
3.5%
3.1%
5%
3.9%
4.5%
2.4%
3.4%
2.7%
3%
1.6%
3.6%
5.5%
3.1%
3.4%
COMPANY
AMOUNT PAID DIVIDEND
YIELD
$10.4
9
7.2
6.8
6.7
6.5
6.2
5.8
5.7
5.4
5.1
5
4.3
4.3
3.8
3.5
3.5
3.4
3.2
3
(In billions)
Telecommunications
Utilities
Consumer staplesIndustrials
Health care
Materials
Energy
Financials
Consumer discretionary
Information technology
AT&T
RadioShack
Cinemark
Waste Management
Atmos Energy
Kimberly-Clark
ConocoPhillips
Ashford HospitalitySysco
Cullen/Frost Bankers
INDUSTRY DIVIDEND YIELDS
COMPANY DIVIDEND YIELDS
0
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
’11’10’09’08’07’06’05’04’03’02’01’00’99’98’97’96
SOURCES: Morningstar; Bloomberg News
5.3%
4%
2.9%2.5%
2.4%
2.3%
2%
1.8%
1.7%
1.2%
5.8%
5.4%
4.4%
4.3%
4.2%
3.8%
3.6%
3.7%3.6%
3.5%
Russell 5000 S&P 500 Bloomberg DFW Index1.61%
1.55%
2.14%
