Several dividend-rich industries
Listed large companies in the following industries, with few exceptions, will pay dividends, and the yield rate is significantly higher than that of other industries:
- Telecommunications: Telecommunications companies are protected by regulations and licenses, and are rich in cash. They usually distribute dividends that are higher than the market yield.
- Public utilities: Water, electricity, and gas are guaranteed by law, and they are profitable, and dividends will be distributed.
- Civilian production industry: I pointed out to readers on page 400 of sections 5-6 of my book “The Rules of Super Growth Stocks Investing” that some companies have even issued dividends for more than a hundred years, and they continue to adjust them every year. High dividends.
- Bank stocks: The business model is stable, and most of the large bank stocks will distribute dividends.
- Large-scale pharmaceuticals: Large-scale pharmaceuticals, due to sufficient patents and cash, will distribute dividends.
- Real estate investment trust funds (Reits): US regulations require that more than 90% of the surplus must be distributed as dividends.
- Large semiconductor companies: The semiconductor industry is actually a cash cow industry, and it is a rare sub-industry that pays high dividends in technology industries. It should be the only industry that wants to be worthy of investing in technology stocks, but also wants to have dividend income. Please refer to my other post “The lucrative semiconductor industry” for details.
Representative companies with lucrative dividends
The following table shows the current stock prices and dividend yield levels of listed US stock companies in the above categories:
|Company name||ticker:||Stock price||Yield rate||Paying frequency||Main business|
|New Jersey Resources||NJR||34.81||4.17%||Quarterly||Gas|
|Procter & Gamble||PG||139.8||2.49%||Quarterly||Consumer|
|JPMorgan Chase||JPM||163.69||2.44%||Quarterly||Mega bank|
|M&T Bank||MTB||149.34||2.95%||Quarterly||Mega bank|
|Bank of New York Mellon||BK||51.84||2.62%||Quarterly||Mega bank|
|Johnson & Johnson||JNJ||161.5||2.63%||Quarterly||Pharmaceutical and consumer|
|Fresenius||FMS||34.87||4.41%||Quarterly||Kidney dialysis services|
The difference between U.S. and Taiwan
There are the following points:
- Extreme emphasis on credibility: The distribution of dividends by listed companies in US stocks is a major event for listed companies. Usually, after the board of directors passes a dividend resolution, once a decision is made, it will not be interrupted or reduced for no reason – because US stocks attach great importance to reputation. If there is a temporary interruption, there are no exceptions, business is in danger. Investors must find out the reason and re-evaluate your investment.
- U.S.-listed companies are very cautious about the amount of dividends. It is rare that some Taiwanese companies can make a temporary sensation at the shareholders meeting, making noise on the spot, negotiating, or determining the number based on the likes and dislikes of the operating director on the spot. This often happens in Taiwan stocks, but it is impossible for U.S. stocks to happen ridiculously.
- U.S. stocks are cash dividends, and there are very few stock dividends—because stock dividends in U.S. stocks are achieved through stock splits.
- Most of them are issued quarterly, and a few are issued half-yearly or monthly.
- Most of the constituent stocks of Dow Jones and S&P 500 will distribute dividends.
- Technology stocks, especially software companies in a broad sense, rarely pay dividends. Readers who are interested in this topic can refer to my previous article “Why more and more U.S. technology stock companies tend not to pay dividends?“. There are only a few exceptions, such as Microsoft (ticker: MSFT) and Oracle (ticker: ORCL). Large semiconductor industries usually pay dividends, and have a long history. The dividends are even higher than the average value of the S&P 500.
- “Considerations as a dividends investor“
- “5 high-yield ETFs in Taiwan, irreversible trends, and how much do Taiwanese like it?“
- “Dividend-rich industries and 6 big differences from Taiwan“
- “Why dividends disappeared suddenly these years?“
- “Tax, inflation and rate are the top three serious killers to investors“
- “Coca-Cola has been inferior to Pepsi in and even return rate is negative in past 10 years!“
- “How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!“
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