NEW YORK, NY--(Marketwire -02/08/12)- With the S&P 500 skyrocketing in the early stages of 2012, investors are shifting away from dividend-paying stocks. According to a recent article from The Wall Street Journal (WSJ), dividend payers often are not perceived to have the same potential for earnings and revenue growth as smaller firms. "When the rest of the market is booming, dividend payers are often lagging behind the crowd," the WSJ argues. Five Star Equities examines the outlook for diversified REITs and provides investment research on Annaly Capital Management, Inc. (NYSE: NLY - News) and Chimera Investment Corporation (NYSE: CIM - News). Access to the full company reports can be found at:
In 2012, non-dividend-paying stocks on the Standard and Poor's 500 are up more than eight percent, while dividend payers are down approximately 1.3 percent and the index as a whole is up close to five percent, data from Bespoke Investment Group finds.
While it is possible that dividend stocks could trail this year, Jack Ablin, chief investment officer of Harris Private Bank, told Reuters that "long term, dividends have accounted for nearly half of the S&P 500 investors' total return." Last year, dividends accounted for all 2 percent of the S&P 500 index's total return, according to an article from Reuters.
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Presently Annaly Capital pays an annual dividend of $2.28 per share for a yield of around 13.3 percent. In late January the company revealed that its Chairman, President and Chief Executive Officer, Michael A.J. Farrell, was diagnosed with cancer and is undergoing chemotherapy. "The good news is that it was caught early and is treatable," said Mr. Farrell.
Chimera Investment Corporation currently pays an annual dividend of 44 cents for a hefty yield of around 14.1 percent.
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