 |
 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 Featured MNV Articles:
| CBT Breaks Above 3% Yield TerritoryBy Dividend Channel Staff, Friday, January 22, 3:14 PM ET
In trading on Friday, shares of Cabot Corp. (NYSE:CBT) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.4), with the stock changing hands as low as $46.27 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Cabot Corp. (NYSE:CBT) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Cabot Corp., looking at the history chart for CBT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.
This Article's Word Cloud:
Arial
Cabot
Corp
Days
Dividends
Dollars
Even
Fast
Friday
Join
Juicy
More
NYSE
Offer
Russell
Seven
Special
Start
Stocks
ValueForum
Where
Yields
about
above
afterLeftLabels
always
amounts
annual
annualized
appear
consider
dividend
dividends
each
escape
fillColor
have
over
period
return
share
shares
special
stock
that
total
whether
with
would
yield
|
Play Video:
The Importance of Dividends
Free Email Alerts By Stock:
Start slideshow: