 |
 |
 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 Featured MNV Articles:
| WSO Breaks Above 4% Yield TerritoryBy Dividend Channel Staff, Wednesday, August 3, 3:23 PM ET
In trading on Wednesday, shares of Watsco Inc. (NYSE:WSO) were yielding above the 4% mark based on its quarterly dividend (annualized to $2.28), with the stock changing hands as low as $55.53 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2011 and each share was worth $80.78 on that date, a mere $2.51 or 3.2% increase over eleven years. But now consider that you collected a whopping $9.69 per share in dividends over the same period, increasing your return to 20.27%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.7%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Watsco Inc. (NYSE:WSO) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Watsco Inc., looking at the history chart for WSO below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
WSO operates in the Industrial Machinery & Equipment sector, among companies like Snap-On, Inc. (NYSE:SNA) which is off about 0.1% today, and Nordson Corp. (NASDAQ:NDSN) trading lower by about 1.6%. Below is a three month price history chart comparing the stock performance of WSO, versus SNA and NDSN.
Free Trial: ''ETF CHANNEL FLEXIBLE GROWTH INVESTMENT PORTFOLIO'' The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors — anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors, commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow the performance trail wherever it leads us.
Find the right mix of model portfolios today at PortfolioChannel.com
This Article's Word Cloud:
Below
Dividends
NDSN
NYSE
Portfolio
Russell
Watsco
about
above
always
amounts
annual
asset
chart
companies
company
comparison
consider
data
designed
dividend
dividends
downs
each
escape
fillColor
follow
gridColor
have
history
important
investors
mere
over
performance
period
portfolio
purchased
return
share
shares
stock
that
total
trading
whether
with
would
years
yield
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Now Playing:
The Importance of Dividends
Start slideshow: