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Analyzing Corning’s Dividend Yield

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Nov. 8 2017, Updated 3:01 p.m. ET

Corning’s dividend yield

Corning’s (GLW) 50% dividend per share growth in 2016 has been followed by 15% growth in 2017, and its stock price has risen, explaining the recent downward slope in its dividend yield curve. Its stock price has risen 30.5% YTD (year-to-date), compared with 33% growth in 2016, thanks to this year’s tech rally. In July 2017, Corning announced a $500 billion investment in an innovative pharmaceutical glass packaging initiative, a collaborative effort with Merck and Pfizer that has the potential to create 1,000 jobs.

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Corning versus the broad indexes

Corning has a PE (price-to-earnings) ratio of 9.8x and a dividend yield of 2%, whereas the sector’s average PE ratio is 25.7x and its dividend yield is 2.4%. The S&P 500 (SPX-INDEX) (SPY) offers a dividend yield of 2.3%, PE ratio of 22.6x, and YTD return of 15.6%. The Dow Jones Industrial Average (DJIA) (DIA) has a dividend yield of 2.3%, PE ratio of 21.1x, and YTD return of 19.1%. The NASDAQ (COMP-INDEX) (ONEQ) has a PE ratio of 25.3x and YTD return of 25.7%.

The FlexShares International Quality Dividend Index ETF (IQDF), a dividend fund, has 55% and 9% exposure to Europe and technology, respectively. It has a 3.6% dividend yield and a PE ratio of 18.7x. Meanwhile, the WisdomTree Europe SmallCap Dividend ETF (DFE) has 96% and 9% exposure to Europe and technology, respectively, and has a 3.6% dividend yield and a PE ratio of 18.7x.

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