Which Sectors Are Best for Dividend Investors?
Where should advisors look for dividends in the stock market? The traditional answer has been the utilities sector, but that isn't suitable for all clients.
Here's a closer look at what S&P 500 sectors yield, how dividends have been growing (or shrinking) in relation to the overall market, and what percentage of stocks in the sector provide a dividend. For comparison, at the end of 2014, the S&P 500 yielded 2% and 84% of its stocks paid a dividend.
The easiest way to buy sectors of the S&P 500 is through the Select Sector SPDRs ETFs. Note, however, that while there are 10 sectors, but only nine ETFs in the set. The reason: At six stocks, the telecommunications services sector is too small to be a portfolio unto itself; it was merged with the IT sector to form the Technology Select Sector SPDR (XLK).
Page through the slides to see a statistical array of dividend information about each of the 10 sectors of the S&P 500, along with some factors to consider when evaluating these investments -- or click here to see the content as a single-page document. -- Joseph Lisanti
All data from S&P Dow Jones Indices; data is as of Dec. 31, 2014.
Read more: 10 Highest-Yielding S&P 500 Stocks