Tags: dividends | utility | telecommunications | company payouts

CNBC: It's More Than Telecoms and Utilities for Good Dividend Stocks

By    |   Tuesday, 22 July 2014 10:40 AM

Utility and telecommunications stocks have typically paid the highest dividends, with the former sector now yielding 4.8 percent and the latter 3.5 percent, according to CNBC.com.

But other industries now offer juicy dividends too, including technology, financial service and consumer discretionary stocks, the news service reports.

Financial service and consumer discretionary shares enjoyed the biggest dividend growth in the first half of the year. Dividends for financials jumped 17.6 percent, and dividends for consumer discretionary stocks soared 19.6 percent.

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Telecoms and utilities saw massive inflows after the 2007-09 financial crisis, and many experts now view them as overvalued.

"You have to intersect the search for yield with valuation," Joseph Gerard Paul, chief investment officer for U.S. value equities at AllianceBernstein, told CNBC.com. "That's going to give you a better chance to win in most market environments, because you can collect yields and get capital appreciation."

Many investors are keenly interested in dividend stocks. The S&P 500 Dividend Aristocrats index, which includes S&P 500 companies that have increased dividends for the last 25 straight years, has generated a return of 4.1 percent so far this year through Friday.

"The search for yield hasn't abated," Mark Freeman, chief investment officer at Westwood Holdings Group, told The Wall Street Journal. "When you see things like utilities and REITs [real estate investment trusts] leading the market, I think that speaks to the impact of it."

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

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Utility and telecommunications stocks have typically paid the highest dividend, with the former sector now yielding 4.8 percent and the latter 3.5 percent, according to CNBC.com.
dividends, utility, telecommunications, company payouts
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2014-40-22
Tuesday, 22 July 2014 10:40 AM
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