Dividend and Earnings Yield by Industry

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Dividend and Earnings Yield by Industry

I debated briefly (between my ears) how to present this data.  I settled on this method, because if you want to play with it you can do so without too much trouble.

Here are the earnings yields, dividend yields, and payout ratios (what percentage of trailing 12-month earnings have been paid out as dividends) by industry and sector:

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Industry E Yield D Yield Payout %
0124 – Metal Mining

18.24%

3.49%

19%

0606 – Oil & Gas – Integrated

13.40%

3.76%

28%

0412 – Auto & Truck Manufacturers

12.61%

1.69%

13%

0709 – Insurance (Life)

11.73%

2.44%

21%

0215 – Construction Services

11.71%

1.83%

16%

0603 – Coal

11.33%

2.89%

25%

0121 – Iron & Steel

10.41%

2.49%

24%

0957 – Retail (Grocery)

10.36%

3.00%

29%

1209 – Water Utilities

9.77%

3.51%

36%

0512 – Fish/Livestock

9.40%

1.74%

18%

0915 – Communications Services

9.03%

4.72%

52%

0706 – Insurance (Accident & Health)

8.98%

1.22%

14%

0609 – Oil & Gas Operations

8.94%

2.06%

23%

0727 – Regional Banks

8.94%

2.85%

32%

0518 – Office Supplies

8.30%

2.47%

30%

0203 – Aerospace and Defense

8.00%

2.12%

26%

0415 – Auto & Truck Parts

8.00%

1.41%

18%

0969 – Schools

7.84%

0.56%

7%

0809 – Major Drugs

7.77%

3.92%

50%

0103 – Chemical Manufacturing

7.74%

2.16%

28%

1103 – Air Courier

7.43%

2.17%

29%

0106 – Chemicals – Plastics and Rubbers

7.36%

2.12%

29%

0524 – Tobacco

7.30%

3.94%

54%

0130 – Non-Metallic Mining

7.28%

0.48%

7%

0206 – Construction & Agricultural Machinery

7.17%

1.62%

23%

0724 – Money Center Banks

7.16%

2.38%

33%

0903 – Advertising

7.00%

1.57%

22%

0218 – Misc. Capital Goods

6.92%

1.76%

25%

0403 – Apparel/Accessories

6.91%

1.41%

20%

1112 – Railroads

6.90%

1.74%

25%

0436 – Tires

6.81%

1.00%

15%

0406 – Appliances & Tools

6.71%

1.90%

28%

0509 – Crops

6.65%

0.62%

9%

0924 – Personal Services

6.61%

1.72%

26%

1006 – Computer Hardware

6.60%

0.28%

4%

0954 – Retail (Drugs)

6.45%

1.13%

17%

1203 – Electric Utilities

6.32%

3.83%

61%

0127 – Misc. Fabricated Products

6.18%

1.86%

30%

1024 – Electronic Instruments & Controls

6.01%

2.08%

35%

0503 – Beverages (Alcoholic)

5.88%

2.34%

40%

0906 – Broadcasting & Cable TV

5.75%

1.50%

26%

0109 – Containters & Packaging

5.67%

2.17%

38%

0806 – Healthcare Facilities

5.58%

0.26%

5%

1106 – Airline

5.52%

0.33%

6%

0715 – Insurance (Property & Casualty)

5.51%

1.71%

31%

1003 – Communications Equipment

5.49%

1.46%

27%

0963 – Retail (Specialty Non-Apparel)

5.49%

0.70%

13%

0506 – Beverages (Non-Alcoholic)

5.47%

2.41%

44%

0515 – Food Processing

5.46%

2.23%

41%

0912 – Casinos & Gaming

5.43%

0.88%

16%

1015 – Computer Peripherals

5.31%

2.32%

44%

0927 – Printing & Publishing

5.21%

2.21%

42%

0951 – Retail (Department & Discount)

5.20%

1.76%

34%

1027 – Office Equipment

5.09%

2.89%

57%

0942 – Restaurants

5.09%

2.02%

40%

0430 – Recreational Products

5.07%

1.57%

31%

1030 – Scientific & Technical Instruments

5.07%

1.27%

25%

0712 – Insurance (Miscellaneous)

5.04%

1.90%

38%

0118 – Gold & Silver

5.03%

1.78%

35%

0939 – Rental & Leasing

4.96%

0.73%

15%

0521 – Personal & Household Products

4.95%

2.64%

53%

1021 – Computer Storage Devices

4.80%

0.22%

5%

1036 – Software & Programming

4.76%

0.96%

20%

0960 – Retail (Home Improvement)

4.73%

1.89%

40%

0418 – Footwear

4.66%

1.09%

23%

0612 – Oil Well Services & Equipment

4.64%

1.64%

35%

0421 – Furniture & Fixtures

4.64%

1.70%

37%

0945 – Retail (Apparel)

4.58%

1.17%

26%

0921 – Motion Pictures

4.58%

0.82%

18%

0209 – Construction – Supplies and Fixtures

4.56%

2.02%

44%

0812 – Medical Equipment & Supplies

4.48%

1.25%

28%

0909 – Business Services

4.47%

1.23%

28%

0803 – Biotechnology & Drugs

4.45%

2.39%

54%

0936 – Recreational Activities

4.45%

2.36%

53%

0303 – Conglomerates

4.29%

1.33%

31%

0918 – Hotels & Motels

4.21%

0.93%

22%

0133 – Paper & Paper Products

4.03%

2.63%

65%

0424 – Jewelry & Silverware

4.03%

0.04%

1%

1109 – Misc. Transportation

3.99%

1.27%

32%

1206 – Natural Gas Utilities

3.87%

3.81%

99%

1018 – Computer Services

3.85%

0.66%

17%

0718 – Investment Services

3.77%

1.84%

49%

0730 – S&Ls/Savings Banks

3.39%

1.93%

57%

0933 – Real Estate Operations

3.00%

3.89%

129%

1033 – Semiconductors

2.81%

1.86%

66%

0112 – Fabricated Plastic & Rubber

2.59%

1.42%

55%

0948 – Retail (Catalog & Mail Order)

2.56%

0.01%

0%

0433 – Textiles – Non-Apparel

2.56%

0.09%

3%

0975 – Waste Management Services

2.55%

2.63%

103%

1115 – Trucking

2.34%

0.61%

26%

0115 – Forestry & Wood Products

2.03%

2.48%

122%

0212 – Construction – Raw Materials

1.62%

1.55%

95%

0427 – Photography

1.00%

0.26%

26%

0221 – Mobile Homes & RVs

0.72%

1.64%

228%

1012 – Computer Networks

-0.57%

0.28%

-48%

0703 – Consumer Financial Services

-3.68%

1.96%

-53%

0972 – Security Systems & Services

-5.04%

1.17%

-23%

0930 – Printing Services

-5.06%

3.58%

-71%

1118 – Water Transportation

-7.14%

3.28%

-46%

0966 – Retail (Technology)

-9.39%

2.52%

-27%

0409 – Audio & Video Equipment

-24.98%

1.32%

-5%

 

Sector E Yield D Yield Payout %
01 – Basic Materials

11.29%

2.62%

23%

06 – Energy

10.46%

2.79%

27%

04 – Consumer Cyclical

8.00%

1.53%

19%

02 – Capital Goods

7.52%

1.86%

25%

Grand Average

6.97%

2.34%

34%

07 – Financial

6.34%

2.28%

36%

09 – Services

6.34%

2.79%

44%

05 – Consumer Non-Cyclical

5.80%

2.64%

46%

12 – Utilities

5.62%

3.82%

68%

08 – Health Care

5.39%

2.49%

46%

11 – Transportation

5.17%

1.62%

31%

10 – Technology

4.82%

1.12%

23%

03 – Conglomerates

4.29%

1.33%

31%

Now, remember that the earnings yields here are backward-looking.  To give you an example, property-casualty insurers and reinsurers lost a lot over the last 12 months, but still managed to have P/E ratios of around 18 (5.5% earnings yield).  When you look at these tables, ask yourself how good current prospects might be relative to the last 12 months.

Also remember that cyclical companies tend to have low valuations before their sales slump.  As sectors go, I think Energy has a lot to commend it in this environment.  Could have a lot of upside, and not much downside.

The tables above cover the whole market, 8800+ companies weighted by their market capitalizations.  I could do a second version to these tables for a subset of the markets, forward-looking, which used the earnings estimates of the sell-side.  I suspect that would cover the larger half of the companies, and roughly 99% of the total market cap.  Let me know if you would like that, it wouldn’t be that hard to do.

PS — Note that everything here is in line with the terms of my data license, because every number here is one that I calculated.  I try to follow that rule in things that I publish, aside from well-known and limited bits of data.

By David Merkel, CFA of Alephblog

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David J. Merkel, CFA, FSA — 2010-present, I am working on setting up my own equity asset management shop, tentatively called Aleph Investments. It is possible that I might do a joint venture with someone else if we can do more together than separately. From 2008-2010, I was the Chief Economist and Director of Research of Finacorp Securities. I did a many things for Finacorp, mainly research and analysis on a wide variety of fixed income and equity securities, and trading strategies. Until 2007, I was a senior investment analyst at Hovde Capital, responsible for analysis and valuation of investment opportunities for the FIP funds, particularly of companies in the insurance industry. I also managed the internal profit sharing and charitable endowment monies of the firm. From 2003-2007, I was a leading commentator at the investment website RealMoney.com. Back in 2003, after several years of correspondence, James Cramer invited me to write for the site, and I wrote for RealMoney on equity and bond portfolio management, macroeconomics, derivatives, quantitative strategies, insurance issues, corporate governance, etc. My specialty is looking at the interlinkages in the markets in order to understand individual markets better. I no longer contribute to RealMoney; I scaled it back because my work duties have gotten larger, and I began this blog to develop a distinct voice with a wider distribution. After three-plus year of operation, I believe I have achieved that. Prior to joining Hovde in 2003, I managed corporate bonds for Dwight Asset Management. In 1998, I joined the Mount Washington Investment Group as the Mortgage Bond and Asset Liability manager after working with Provident Mutual, AIG and Pacific Standard Life. My background as a life actuary has given me a different perspective on investing. How do you earn money without taking undue risk? How do you convey ideas about investing while showing a proper level of uncertainty on the likelihood of success? How do the various markets fit together, telling us us a broader story than any single piece? These are the themes that I will deal with in this blog. I hold bachelor’s and master’s degrees from Johns Hopkins University. In my spare time, I take care of our eight children with my wonderful wife Ruth.