30 High-Dividend Services Stocks

Recently we discussed investing in high dividend mega-cap services stocks. We showed that the risky large-cap services stocks with low dividend yields have performed much better recently. However, we believe investors should be more cautious about the upcoming inflationary environment and invest in defensive stocks with high dividend yields. Although defensive investing doesn’t always give the best returns in bull markets, it provides a better protection in down markets. We believe similar defensive strategy can also be effective for mid-cap services stocks. We compiled a list of 30 services stocks (the sector classifications are sourced from Finviz) that have a market cap between $10B and $20B and ranked them based on their 12-month dividend yields. The top and bottom halves, and their performances, are shown below: HIGHER DIVIDEND YIELDS Dividend Yield YTD Return 52-week Return Paychex Inc. PAYX 3.9% 4.52% 14.7% Sysco Corp. SYY 3.2% 10.60% 14.4% The Mc-Graw-Hill Companies... Read more