The percentages look much worse for high -
yield sectors when EBIT is used.
Not exact matches
Now the mining
sector offers attractive
yields at a time
when interest rates are at record lows.
Dividend stocks that
yield more
When it comes to equities, high - paying dividend stocks, especially in the utility and REIT
sectors, have been the go - to investment of late.
When diving into the valuation ratios based on trailing earnings and free cash flow, the energy
sector offered a choice was between E&P and Integrated oil companies that had sustained large drops in their earnings, and Refiners who had an earnings
yield close to 12 %, and had seen an uptick in earnings.
The findings: Traditional defensive
sectors such as utilities, telecommunications, real estate and consumer staples provided minimal protection
when nominal
yields moved higher.
I was adding to consumer staples companies
when that
sector was weak (dollar cost averaging), sticking to my philosophy and buying better
yields.
Dividends can really drive performance
when a company becomes one of the highest -
yielding firms in its space — or
when it pays a dividend in a
sector not ordinarily known for dividends.
This is not to say that defensive
sectors of the market are not modestly overpriced relative to more cyclical
sectors or that,
when faced with paltry rates on bonds, some investors have not taken to chasing
yield where they can find it.
From a
sector perspective, energy, materials and financials make up more than a third of the MSCI Europe Index.2 Many of these companies tend do well
when inflation is rising and bond
yields are rising because typically inflation nudges up commodity prices and financial companies tend to profit
when the
yield curve steepens.
The dividend
yields within this
sector are above average
when compared to the wider market, largely because of the high -
yielding telecom plays.
Eyeballing a fund's 2008 returns,
when many
yield - focused funds were stress - tested as a result of weakness in the financials
sector, is another way to get your arms around the risk level a dividend - focused investment is likely to entail.
Cap - and - trade will not
yield the desired results
when there are no concomitant strategies in place to address emissions from other
sectors.
Even in 2008 —
when the Las Vegas Convention Center was reduced to a ghost town by the Great Recession and the credit crisis — I remember executives assuring me that the dark days would pass quickly and, in fact, would
yield amazing growth opportunities for the
sector.
«Although prices of Class A assets in the U.S. are high and
yields are lower, the promise of reliable returns leads to sustained interest in the
sector overall, especially
when compared to other global markets,» noted said Greg Williams, national
sector leader for KPMG's Building, Construction & Real Estate division.