With the financial stocks in turmoil, I thought it would be good to point out just how important the sector is to the broad market (and dividend investors).
The following data is from Howard Silverblatt, an old co-worker at Standard & Poor's:
-- The Financials account for the largest share of dividend payments to the S&P 500 (30.41%), and have the highest tendency to pay and increase.
-- Year-to-date, there have been 60 dividend increases in the Financial sector (93 issues), one decrease (MGT in October from $1.00 to $0.10 - note they still pay) and 1 suspension (MI, that increased in January and is now splitting into two concerns).
-- The yield on the Financials has increased from 2.39% at year end to 3.22% (3.19% if FRE decreases its payment by half).
Is it time to buy some of these beaten-down behemoths? While there could be more pain before this is all over, I do think some of the strongest names are looking attractive.
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