For Investors Seeking Dividends Within A Growth Sector, Semi-Conductors May Be Well-Positioned To Deliver

Tuesday, August 28, 2012 06:59
edit
For Investors Seeking Dividends Within A Growth Sector, Semi-Conductors May Be Well-Positioned To Deliver

The semiconductor industry is turning around after four quarters of dismal performance and may be attractive for clients seeking a growth sector that also pays higher dividends. Comparisons will be easier going forward because of the non-performance over the previous year so the turnaround may get some legs from easier earnings comparisons.

This Website Is For Financial Professionals Only


 
A year of weak sales in the industry typically does lead to a strong year following. And some semiconductor companies pay dividends on their stocks—something that may appeal to income-seeking investors.
 
Many semi-conductor companies are also mid-caps so their dividends do not compete with larger company dividends. Dividend growth in mid-caps is more robust than in larger cap stocks.
 
The key is to follow the pace and direction of dividend growth over a period of years.
 
Some portfolios experienced dividend growth over the five years ended in June 2012 in the double digits. Over that same period, the S&P 500 had dividend growth of about 2%.
 

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy