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GMT Dividend Yield Pushes Above 3%

By Dividend Channel Staff, Friday, November 16, 3:28 PM ET
Play Video: The Importance of Dividends


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In trading on Friday, shares of GATX Corp. (NYSE:GMT) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.20), with the stock changing hands as low as $39.83 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 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. GATX Corp. (NYSE:GMT) 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 GATX Corp., looking at the history chart for GMT 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 3% annual yield.


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According to the ETF Finder at ETF Channel, GMT makes up 6.24% of the iShares Dow Jones Transportation Average Index Fund ETF (AMEX:IYT) which is trading lower by about 0.8% on the day Friday.

See what other ETFs contain GMT
See what other stocks are held by IYT


This Article's Word Cloud:   AMEX   Average   Corp   Definition   Dividends   ETFs   Friday   Fund   GATX   Importance   Jones   NYSE   Portfolio   Russell   about   above   amounts   annual   company   consider   dividend   dividends   downs   each   escape   fillColor   gridColor   gridLocation   have   iShares   important   movingAverageColors   other   over   period   purchased   return   share   shares   slideshow   stock   that   total   trading   what   whether   with   would   years   yield

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