This series will discuss some of the Dow Jones Industrial Average (or DJIA) companies in the highest income tax bracket and their corresponding dividend yields. The table below ranks these top 11 companies. The services sector dominates the list followed by financial and industrial goods.
The above yields compare to a dividend yield of 2.3% and year-to-date (or YTD) price gains of 14.7% from the Dow Jones Industrial Average (DJIA-INDEX) (DIA). The S&P 500 (SPX-INDEX) (SPY) has a dividend yield of 2.4% and YTD price gains of 13.3%. The NASDAQ Composite (COMP-INDEX) (ONEQ) has a YTD price gain of 21.4%.
How have the sectors performed so far?
The telecommunications sector has been the highest dividend-yielding sector but has also witnessed negative price returns. In contrast, the information technology (or IT) sector has the lowest dividend yield despite the highest YTD price returns. Utilities and then consumer staples have been the next highest dividend yielders. Health care has reported the second highest price returns and the fifth highest dividend yield.
The Vanguard Dividend Appreciation ETF (VIG) is a dividend ETF with exposure to the Dow Jones Industrial Average. The ETF has a dividend yield of 2.1% and a price-earnings (or PE) multiple of 23.5x. The iShares Core High Dividend ETF (HDV) is a dividend ETF with exposure to the Dow Jones Industrial Average. It has a dividend yield of 3.3% and a PE of 21x.
We’ll analyze the top 11 high tax bracket companies of the Dow Jones Industrial Average in the upcoming parts of the series.