Dividend Yields by Industry

Dividend Yields by Industry

My last post on this focused on trailing earnings.  Trailing earnings have the advantage of being objective, but analysts try to estimate the future.  To some degree they succeed, and that becomes the bar by which we measure the progress of companies.

Now fewer companies have analysts following them, and the database that I use is not as reliable on earnings estimates for foreign companies trading on US exchanges.  The following table covers a huge percentage (98%+) of the market cap of domestic stocks trading in the US.

Definitions:

  • FE Yield: forward earnings yield for the next full 12 fiscal months.
  • E Yield: trailing earnings yield for the last twelve months.
  • D Yield: dividend yield given the current price.
  • F Payout %: what percentage of the next fiscal year’s earnings is comprised by dividends.
  • E Growth: how much do the estimated earnings of the next fiscal year increase over the earnings of the last 12 months.
Industry FE Yield E Yield D Yield F Payout % E growth
0906 – Broadcasting & Cable TV

28.27%

5.85%

1.47%

5%

384%

0436 – Tires

21.00%

15.81%

0.72%

3%

33%

1106 – Airline

19.29%

1.80%

0.08%

0%

971%

0709 – Insurance (Life)

14.46%

13.36%

1.77%

12%

8%

0412 – Auto & Truck Manufacturers

14.11%

26.47%

0.57%

4%

-47%

0966 – Retail (Technology)

14.05%

-8.68%

2.33%

17%

-262%

0724 – Money Center Banks

12.42%

9.33%

1.41%

11%

33%

1027 – Office Equipment

12.30%

10.85%

2.55%

21%

13%

0124 – Metal Mining

12.02%

11.23%

4.18%

35%

7%

0606 – Oil & Gas – Integrated

11.22%

11.04%

2.39%

21%

2%

1015 – Computer Peripherals

11.10%

9.27%

0.21%

2%

20%

0706 – Insurance (Accident & Health)

11.06%

9.11%

1.22%

11%

21%

0509 – Crops

11.05%

9.06%

1.23%

11%

22%

0930 – Printing Services

11.04%

2.80%

4.37%

40%

295%

0121 – Iron & Steel

10.73%

3.33%

2.48%

23%

222%

0809 – Major Drugs

10.49%

5.80%

3.60%

34%

81%

0118 – Gold & Silver

10.46%

1.78%

1.53%

15%

487%

0518 – Office Supplies

10.40%

8.42%

2.51%

24%

24%

0133 – Paper & Paper Products

9.99%

8.15%

2.19%

22%

23%

0206 – Construction & Agricultural Machinery

9.70%

7.02%

1.56%

16%

38%

0730 – S&Ls/Savings Banks

9.57%

2.35%

1.18%

12%

308%

0106 – Chemicals – Plastics and Rubbers

9.51%

7.13%

2.04%

21%

33%

0727 – Regional Banks

9.46%

7.27%

1.57%

17%

30%

0415 – Auto & Truck Parts

9.45%

7.75%

1.38%

15%

22%

0603 – Coal

9.33%

8.55%

2.95%

32%

9%

0609 – Oil & Gas Operations

9.29%

6.98%

1.48%

16%

33%

1024 – Electronic Instruments & Controls

9.26%

7.48%

0.98%

11%

24%

0130 – Non-Metallic Mining

9.11%

8.66%

0.54%

6%

5%

1006 – Computer Hardware

8.92%

6.34%

0.14%

2%

41%

0203 – Aerospace and Defense

8.80%

8.37%

2.23%

25%

5%

0927 – Printing & Publishing

8.59%

3.34%

2.12%

25%

158%

1112 – Railroads

8.59%

6.78%

1.72%

20%

27%

1021 – Computer Storage Devices

8.57%

4.69%

0.00%

0%

83%

0109 – Containters & Packaging

8.50%

4.22%

1.57%

18%

102%

0612 – Oil Well Services & Equipment

8.40%

6.16%

1.62%

19%

36%

1033 – Semiconductors

8.28%

6.05%

1.70%

21%

37%

0409 – Audio & Video Equipment

8.22%

4.33%

0.30%

4%

90%

0969 – Schools

8.17%

10.21%

0.76%

9%

-20%

0951 – Retail (Department & Discount)

8.16%

5.72%

1.96%

24%

43%

0127 – Misc. Fabricated Products

8.08%

7.02%

1.00%

12%

15%

0703 – Consumer Financial Services

8.08%

6.05%

1.89%

23%

33%

0954 – Retail (Drugs)

8.08%

6.99%

1.52%

19%

16%

0218 – Misc. Capital Goods

7.99%

5.92%

1.12%

14%

35%

0715 – Insurance (Property & Casualty)

7.97%

8.27%

0.83%

10%

-4%

0921 – Motion Pictures

7.92%

7.80%

0.98%

12%

2%

0924 – Personal Services

7.81%

6.61%

1.98%

25%

18%

0718 – Investment Services

7.67%

4.89%

1.86%

24%

57%

0103 – Chemical Manufacturing

7.54%

5.92%

1.77%

23%

27%

0209 – Construction – Supplies and Fixtures

7.53%

4.47%

2.09%

28%

69%

0406 – Appliances & Tools

7.50%

5.34%

1.72%

23%

40%

0806 – Healthcare Facilities

7.49%

5.18%

0.10%

1%

45%

0503 – Beverages (Alcoholic)

7.45%

5.40%

1.52%

20%

38%

0512 – Fish/Livestock

7.45%

6.55%

2.17%

29%

14%

1018 – Computer Services

7.44%

4.48%

0.71%

10%

66%

1003 – Communications Equipment

7.39%

4.95%

1.06%

14%

49%

1103 – Air Courier

7.36%

5.54%

2.04%

28%

33%

0957 – Retail (Grocery)

7.35%

4.43%

1.85%

25%

66%

0221 – Mobile Homes & RVs

7.25%

5.78%

1.19%

16%

25%

0903 – Advertising

7.16%

6.26%

1.63%

23%

14%

1036 – Software & Programming

7.14%

5.24%

0.93%

13%

36%

0524 – Tobacco

7.08%

5.61%

3.90%

55%

26%

1030 – Scientific & Technical Instruments

7.04%

5.33%

1.35%

19%

32%

0433 – Textiles – Non-Apparel

7.00%

3.95%

0.09%

1%

77%

0812 – Medical Equipment & Supplies

6.98%

5.53%

1.02%

15%

26%

0430 – Recreational Products

6.97%

4.56%

1.49%

21%

53%

0803 – Biotechnology & Drugs

6.92%

4.31%

2.11%

30%

61%

1203 – Electric Utilities

6.85%

6.32%

3.89%

57%

8%

0515 – Food Processing

6.79%

4.26%

2.40%

35%

59%

0945 – Retail (Apparel)

6.76%

5.01%

1.23%

18%

35%

0421 – Furniture & Fixtures

6.72%

4.99%

1.73%

26%

35%

0963 – Retail (Specialty Non-Apparel)

6.61%

5.44%

0.75%

11%

21%

1115 – Trucking

6.56%

2.90%

0.61%

9%

126%

0960 – Retail (Home Improvement)

6.55%

4.81%

1.86%

28%

36%

0403 – Apparel/Accessories

6.55%

4.20%

0.77%

12%

56%

0939 – Rental & Leasing

6.55%

3.07%

0.53%

8%

113%

0112 – Fabricated Plastic & Rubber

6.53%

2.58%

0.74%

11%

153%

0712 – Insurance (Miscellaneous)

6.44%

5.00%

1.99%

31%

29%

0303 – Conglomerates

6.39%

1.87%

0.31%

5%

241%

0521 – Personal & Household Products

6.37%

5.03%

2.65%

42%

27%

0506 – Beverages (Non-Alcoholic)

6.32%

5.55%

2.61%

41%

14%

0909 – Business Services

6.29%

5.06%

1.13%

18%

24%

0936 – Recreational Activities

6.29%

4.56%

2.04%

32%

38%

0975 – Waste Management Services

6.22%

4.43%

2.15%

35%

40%

0972 – Security Systems & Services

6.19%

-1.48%

1.33%

21%

-519%

0942 – Restaurants

5.99%

4.98%

1.93%

32%

20%

0915 – Communications Services

5.98%

1.28%

4.73%

79%

368%

1209 – Water Utilities

5.86%

5.93%

3.19%

54%

-1%

0418 – Footwear

5.64%

4.51%

1.07%

19%

25%

1109 – Misc. Transportation

5.62%

4.04%

1.23%

22%

39%

0918 – Hotels & Motels

5.44%

3.77%

0.86%

16%

44%

0215 – Construction Services

5.08%

2.21%

1.10%

22%

130%

0424 – Jewelry & Silverware

5.01%

3.56%

0.04%

1%

41%

0427 – Photography

4.99%

1.72%

0.00%

0%

189%

1206 – Natural Gas Utilities

4.91%

3.56%

4.01%

82%

38%

1012 – Computer Networks

4.76%

0.87%

0.28%

6%

445%

1118 – Water Transportation

4.62%

-0.91%

0.75%

16%

-607%

0912 – Casinos & Gaming

4.57%

6.23%

1.14%

25%

-27%

0948 – Retail (Catalog & Mail Order)

3.91%

2.86%

0.01%

0%

37%

0933 – Real Estate Operations

3.03%

2.79%

4.01%

132%

9%

0115 – Forestry & Wood Products

2.14%

2.13%

2.60%

121%

1%

0212 – Construction – Raw Materials

2.11%

-1.93%

1.38%

65%

-209%

And here it is by sectors:

Sector FE Yield E Yield D Yield F Payout % E growth
06 – Energy

9.94%

8.60%

1.93%

22%

16%

07 – Financial

9.44%

7.21%

1.48%

21%

31%

04 – Consumer Cyclical

9.15%

10.61%

1.06%

10%

-14%

09 – Services

8.85%

4.32%

2.18%

50%

105%

01 – Basic Materials

8.67%

6.43%

2.02%

31%

35%

11 – Transportation

8.60%

4.99%

1.49%

30%

72%

Grand Average

8.39%

5.97%

1.81%

30%

41%

02 – Capital Goods

7.98%

6.14%

1.72%

28%

30%

10 – Technology

7.89%

5.53%

0.84%

15%

43%

08 – Health Care

7.38%

4.79%

1.88%

39%

54%

05 – Consumer Non-Cyclical

6.72%

5.15%

2.79%

54%

30%

03 – Conglomerates

6.39%

1.87%

0.31%

16%

241%

12 – Utilities

6.13%

5.30%

3.93%

74%

16%

Some of the percentages for earnings growth are inflated because the last 12 months include writeoffs, disappointments, etc., but forecasted earnings are typically optimistic, and anticipate no errors.

I would encourage you to view this where you look down the list, and say, “Wait. That doesn’t look right. That industry shouldn’t be that high/low relative to other industries.”  Then dig in and try to analyze for individual companies where there might be real advantage in the industries with good relative prospects.

Being forward-looking is an advantage if you have an ability to discern where industry trends are going to change; I may have that to some small degree, which is why when I invest, I look at trailing earnings and forward earnings.  Have one foot in reality, and the other foot in hope/analysis.  Things change less than expected, but things change.

As for me, I’m happy with my energy, insurance, and technology stocks, even if I haven’t been rewarded well over the last three months.  They are cheap, and have decent pricing power.  I stress patience, and so I hold after poor results, and I might increase the stakes.

Written By David Merkel of The Aleph Blog




About the Author

David Merkel
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.