The one hundred components in the Dow Jones U.S. Select Dividend Index are “selected to the index by dividend yield, subject to screens for dividend-per-share growth rate, dividend payout ratio and average daily dollar trading volume. Components are weighted by indicated annual dividend”. As of July 31,2009 the total return for the index was -4.03% and the yield is 4.39%. Utilities account for one fourth of the index.The following is a brief overview of the top ten stocks from this index:
1.CenturyTel Inc (CTL) is a telecom provider with operations rural and mid-size markets in 25 states. The majority of its business are in Missouri, Wisconsin, Alabama, Arkansas and Washington.The current dividend yield is 9.02% and the market cap is $9.2B. Last year the company had $2.6 in revenues.
2.New York Community Bancorp Inc.(NYB) has 214 branches in all five boroughs of New York City, Long Island, and Westchester County in New York, and Essex, Hudson, Mercer, Middlesex, Monmouth, Ocean, and Union counties in New Jersey. NYB pays a dividend of 9.31%.
3.Zenith National Insurance Corp. (ZNT) is a small-cap property and casualty insurance company offering worker’s compensation, reinsurance and investments. Dividend yield is 7.97% and the beta is 0.9. For the 2nd quarter, Zenith reported a net income of $1.8 million.
4.R.R. Donnelley & Sons Co.(RRD) is a printing services company. It pays a 6.16% dividend yield.
Donnelley earned $25.2 million, or 12 cents a share in the 2nd quarter and sales fell to $2.36B.
5.Altria Group Inc. (MO) is a fully owned subsidiary of Philip Morris USA Inc with a dividend yield of 7.26% which is comparable to the yield of its peer Reynolds America (RAI). MO has a profit margin of about 15%.
6.Based in Puerto Rico First Bancorp(FBP) is bank holding company with operations in Puerto Rico, the United States and the US and British Virgin Islands. In the past 52-weeks the stock is down nearly 67% due to loan losses.The current yield is 8.81%. On July 30th, First Bancorp announced the suspension of common and preferred dividends.
7.F.N.B. Corp.(FNB) is a bank holding company operating in Pennsylvania, Ohio, Tennessee, Pennsylvania and Florida.FNB pays a 6.85% dividend yield. The Tier 1 risk-based capital ratio was 13.22% on June 30, 2009.
8.NiSource(NI) is a utility that provides “natural gas, electricity, and other products and services to approximately 3.8 million customers located within a corridor that runs from the Gulf Coast through the Midwest to New England.” It pays a 7.10% yield.Revenue and earnings growth are down in the past few years and the stock is a poor performer.
9.Mercury General Corp.(MCY) is a California-based insurance company offering homeowners, mechanical breakdown, commercial and dwelling fire, and commercial property insurance. In 52 weeks MCY is down 28% and the dividend yield is 6.34%.
10.Arizona-based electric utility Pinnacle West Capital Corp. (PNW) has a market cap of $3.3B.The current dividend yield is 6.50%.
To download the complete list of Dow Jones U.S. Select Dividend Index components in Excel click here.
Note: The yield listed in the Excel file is as of July 27,2009
