Mid-cap non-financials dividend stocks

The mid-cap non-financials can be divided into two camps: consumer/industrials and telecom/utilities. Both groups have offered good dividend growth recently, as opposed to financials which have offered little to no dividend growth since the financial crisis.

But the difference between the two groups is that the consumer/industrial group generally offers lower yields and payout ratios. “[While this group offers] much-needed sector diversification (since most dividend growers tend to be financials), they should be held by investors primarily because their underlying business case is attractive,” Mr. Vasic said. It’s tempting to look at higher yields in telecom and utilities, but the group offers an example of the danger of high-yield dividend stocks, as Manitoba Telecom Services Inc. cut its dividend substantially this year.

Source: Globe and Mail

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