dividend yield

Dividend Yields Hit 12 Year High

Last week’s market correction has lowered stock prices to the point where dividend yields are now at their highest levels in 12 years. Leading S&P 500 components such as Pfizer (PFE), AT&T (T), Dow Chemical (DOW), Nucor (NUE), and Duke Energy (DUK) all ended the week with forward looking dividend yields of over 6.5% and well above their 5 year averages.


Insurance Under Pressure

The collapse and federal rescue of AIG only signaled the beginning of problems for the insurance industry which was the worst performing sector in the past month.


Retailers Show Steady Improvement

Since coming off a mid-July low, the Dow Jones US Broadline Retailers Index has shown steady improvement. Dollar stores, club stores, Wal-Mart (WMT) and Amazon.com (AMZN) have been the best performers in the group over the last 6 months as consumers went in search of lower cost retailers to offset rising food and gas prices.


Homebuilders Climb Out of the Basement

US home builder stocks have been the best performing industry group over the past month. The Dow Jones US Home Construction Index is up over 11% in the past 30 days and up over 20% from the mid-July low.


Medical Devices Remain Strong

The Dow Jones US Medical Devices Index has steadily recovered from its low at the beginning of July. The performance continued last week as leading component Medtronic(MDT) issued a positive earnings report and confirmed guidance for the year.


Strong July for Small Cap Value

As reported in ETF News, the small cap value index was the top performer for the month of July. Small cap value ETFs benefited as evidenced by the accompanying chart of the SPDR DJ Wilshire Small Cap Value ETF (DSV).


Consumer Goods Climbing Back

Despite continuing declines in the auto sector, the DJ Consumer Goods Index has steadily climbed back from its July low. Strength in food & beverage as well as in personal and household goods have lead the sector higher.