In other sectors such as technology firms have

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Unformatted text preview: e or no dividends. In Table 2.2, the 5 sectors with the highest and lowest dividend yields in the United States in October 2002 are listed. Table 2.2: Sectors with high and low dividend yields Lowest Dividend Paying Sectors Industry Biotechnology Average yield 0.00% Highest Dividend Paying Sectors Industry Bank Average yield 2.22% 27 E-Commerce 0.00% Petroleum 2.41% Internet 0.00% Maritime 2.61% Semiconductor Cap Eq 0.00% Water Utility 2.69% Telecom. Equipment 0.00% Chemical (Basic) 2.99% Educational Services 0.02% Electric Utility 4.11% Cable TV 0.04% Natural Gas 4.40% Wireless Networking 0.06% Tobacco 5.48% Information Services 0.07% Investment Cos 6.30% Computer Software 0.07% R.E.I.T. 6.63% These differences across sectors matter for two reasons. First, what comprises a high or low dividend yield may depend upon the sector. Thus, a dividend yield of 2% may be viewed as a low yield for an electric utility but would be a high yield for a software firm. Second, picking the stocks that have the highest dividend yields in the market will result in a portfolio that is ove...
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This note was uploaded on 01/17/2012 for the course ECON 101 taught by Professor Econnorm during the Spring '11 term at Art Institutes Intl. Minnesota.

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