Sunday, October 03, 2010

Dividend Payers Had Respectable Showing In September

In a strong market like that experienced in the month of September, the dividend payers in the S&P 500 had a respectable showing versus the non-payers. The average return for the payers was 6.77% versus 7.51% for the non-payers. Year to date though, the dividend payers continue to outperform the non-payers and the broader S&P 500 Index as detailed in the table below.

From The Blog of HORAN Capital Advisors
During the month S&P reports,
  • 483 of the stocks in the index generated a positive return.
  • 237, or 47%, of the index stocks had a return that was greater than 10%.
  • September's price return of return of 8.76% was the best since the index returned 16.46% in September 1939.
  • the best performing sectors achieving double digit returns were technology (+12.11%), Industrials (+11.20%) and Consumer Discretionary (+11.00%.)
The first trading day in October (Friday) saw the market move higher by .44%. This coming week will see many investors focused on Friday's non-farm payroll report. A strong recovery would see payrolls increases around 250,000. The economy is far from this figure at the moment.

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