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Companies in certain industries tend to provide higher dividend yields than companies in other industries. Utilities and basic materials companies tend to consistently pay good dividend yields. However, these two sectors are further subdivided into various industries. Within basic materials, gold mining stocks often provide small dividends if any dividend at all, while some steel companies provide substantial dividends.

The following list contains the top paying dividend stock for each industry using Edgar’s industry classification. I applied a filter to eliminate any company with a market capitalization below $500 million. While this is a somewhat arbitrary level, the goal is to avoid small capitalization stocks. It should also be noted that a few industries did not have any companies that paid dividends. This included jewelry and photography.

Dividends ranged from a low of 0% for jewelry (0.4% for textiles) to highs of over 15% for real estate operations or REITs.

Top Paying Dividend Stocks by Industry
Ticker Name Industry Market Cap ($ Millions) Dividend Yield
HHS Harte-Hanks, Inc. Advertising 529 3.9%
LMT Lockheed Martin Corporation Aerospace & Defense 28,301 3.7%
CZZ Cosan Limited Agriculture Crops 2,160 2.1%
UPS United Parcel Service, Inc. Air Courriers 72,763 2.8%
RYAAY Ryanair Holdings plc Airlines 8,539 12.2%
TAP Molson Coors Brewing Company Alcoholic Beverages 7,423 2.8%
VFC V.F. Corporation Apparel 12,154 2.3%
OTCPK:ELUXY Elextrolux Appliance & Tools 7,657 3.5%
PHG Koninklijke Philips Electronics, N.V. Audio Video Equipment 24,073 3.4%

OTCPK:VOLVY

Volvo Auto & Truck Manufacturing 35,736 2.0%
GPC Genuine Parts Company Auto & Truck Parts 8,744 3.2%
AZN Astrazeneca PLC Biotechnology & Drugs 71,973 7.2%
SJR Shaw Communications Inc. Broadcasting & Cable TV 9,410 4.0%
CODI Compass Diversified Holdings Business Services 775 8.7%
THO Thor Industries, Inc. Campers & RV Vehicles 1,613 1.4%
ASCA Ameristar Casinos, Inc. Casino & Gaming 770 1.8%
TNH Terra Nitrogen Company, L.P. Chemical Manufacturing 2,564 14.0%
SHLM A. Schulman, Inc. Chemicals: Plastics & Rubber 787 2.4%
PVR Penn Virginia Resource Partners LP Coal Mining 1,913 7.1%
NOK Nokia Corporation Communications Equipment 23,668 6.5%
PT Portugal Telecom SGPS, S.A . Communications Services 8,540 17.7%
HPQ Hewlett-Packard Company Computer Hardware 75,644 1.3%
JKHY Jack Henry & Associates, Inc. Computer Networking Equipment 2,633 1.4%
CAJ Canon, Inc. Computer Peripherals 58,598 3.0%
ELNK EarthLink, Inc. Computer Services 860 2.6%
STX Seagate Technology. Computer Storage Devices 6,967 4.4%
TYC Tyco International, Ltd. (Switzerland) Conglomerate 23,302 2.0%
VMC Vulcan Materials Company Construction - Raw Materials 5,107 2.5%
MAS Masco Corporation Construction - Supplies & Fixtures 4,394 2.4%
DE Deere & Company Construction & Agricultural Equipment 35,608 1.9%
MDC M.D.C. Holdings, Inc. Construction Services 1,196 4.0%
GE General Electric Company Consumer Financial Services 201,928 3.2%
IP International Paper Company Containers & Packaging 13,061 3.5%
AT Atlantic Power Corporation Electric Utilities 1,060 7.1%
MOLX Molex Incorporated Electronic Instruments & Control 4,576 3.1%
CSL Carlisle Companies Incorporated Fabricated: Plastics & Rubber 3,035 1.4%
CALM Cal-Maine Foods, Inc. Fish & Livestock 775 5.8%
BGS B&G Foods Holdings Corp. Food Manufacturing 1,014 4.0%
NKE Nike, Inc. Footware 43,497 1.4%
WY Weyerhaeuser Company Forestry & Wood Products 11,930 2.7%
LEG Leggett & Platt, Incorporated Furniture & Fixtures 3,538 4.4%
NEM Newmont Mining Corporation (Holding Company) Gold and Silver Mining 26,819 1.5%
VIVO Meridian Bioscience Inc. Health Equipment 1,011 3.1%
NHC National HealthCare Corporation Healthcare Facilities 673 2.5%
IHG Intercontinental Hotels Group Hotels & Motels 6,145 2.2%
AFL Aflac Incorporated Insurance (Accident & Health) 21,725 2.6%
SLF Sun Life Financial Incorporated Insurance (Life) 17,641 4.7%
AJG Arthur J. Gallagher & Co. Insurance (Miscellaneous) 3,198 4.6%
OB OneBeacon Insurance Group, Ltd. Insurance (Property) 1,242 6.4%
BBEP BreitBurn Energy Partners, L.P. Integrated Oil 1,165 8.5%
PVD Administradora de Fondos de Pensiones-Provida, S.A. Investment Services 1,598 7.2%
TX Ternium S.A. Iron & Steel 6,112 4.9%
GSK GlaxoSmithKline PLC Major Drugs 111,656 4.9%
SCCO Southern Peru Copper Corporation Metals 27,804 6.9%
WSO Watsco, Inc. Miscellaneous Capital Goods 2,235 3.4%
SJT San Juan Basin Royalty Trust Miscellaneous Financial Services 1,136 6.1%
PAC Grupo Aeroportuario Del Pacifico, S.A. de C.V. Miscellaneous Transportation 1,954 5.5%
NKA Niska Gas Storage Partners LLC Natural Gas 575 8.2%
DPS Dr Pepper Snapple Group, Inc Non-alcoholic Beverages 9,461 3.0%
CMP Compass Minerals Intl Inc Non-metallic mining 2,853 2.1%
XRX Xerox Corporation Office Equipment 14,811 1.6%
DLX Deluxe Corporation Office Supplies 1,337 3.9%
ENP Encore Energy Partners LP Oil Production 987 9.0%
TLP Transmontaigne Partners L.P. Oil Well Services & Equipment 509 6.9%
OTCQX:SEOAY STORA ENSO CORP Paper and Pulp 8,239 2.7%
KMB Kimberly-Clark Corporation Personal & Household Products 26,134 4.2%
STON StoneMor Partners L.P. Personal Services 543 8.3%
RRD R.R. Donnelley & Sons Company Printing 4,156 5.2%
SID National Steel Corporation Product Fabrication 18,370 5.1%
TRI Thomson Reuters Corp Publishing 31,240 3.3%
GSH Guangshen Railway Company Limited Railroads 3,000 2.9%
ARR Armour Residential Real Estate Operations 520 19.2%
TRK Speedway Motorsports, Inc. Recreational Activities 599 2.8%
MAT Mattel, Inc. Recreational Products 9,701 3.3%
TAL TAL International Group, Inc. Rental & Leasing 1,164 5.7%
MCD McDonald's Corporation Restaurants 88,858 2.9%
AEO American Eagle Outfitters, Inc. Retail (Apparel) 2,516 3.4%
WMT Wal-Mart Stores, Inc. Retail (Department) 185,400 2.7%
WAG Walgreen Company Retail (Drug Stores) 39,118 1.6%
HD Home Depot, Inc. (The) Retail (Furnishings) 58,260 2.7%
SVU SuperValu Inc. Retail (Grocery) 1,994 3.7%
UNTD United Online, Inc. Retail (Specialty) 554 6.4%
BBY Best Buy Co., Inc. Retail (Technology) 12,532 1.9%
STRA Strayer Education, Inc. Schools 1,606 3.1%
LDR Landauer, Inc. Scientific Instruments 593 3.5%
DBD Diebold, Incorporated Security Services and Products 2,068 3.5%
TSM Taiwan Semiconductor Manufacturing Company Limited Semiconductors 65,915 6.2%
MSFT Microsoft Corporation Software & Programming 219,505 2.5%
IFSIA Interface, Inc. Textiles - non apparel 1,301 0.4%
CTB Cooper Tire & Rubber Company Tires 1,225 2.1%
MO Altria Group Tobacco 55,684 5.7%
KNX Knight Transportation, Inc. Trucking 1,429 1.4%
WM Waste Management, Inc. Waste Management Services 17,839 3.6%
NMM Navios Maritime Partners LP Water Transportation 854 9.3%
CWT California Water Service Group Holding Water Utilites 780 3.3%

Source: Data provided by Zacks.com services and downloaded on July 6, 2011. Classifications provided by EDGAR Online’s I-Metrix Professional, XBRL-enabled application

This list is a good starting place for an investor looking to diversify across different industries while obtaining a good dividend yield. However, it is important to recognize that this is simply a yield chasing list.

The comparison of stocks to MLPs is not valid since MLPs carry different tax implications. Furthermore, any foreign stocks that appear on this list might have tax withholding implications that could impact their effective after tax yield. It should also be noted that many foreign companies pay irregular dividends.

Zacks.com uses an annualized calculation (as opposed to a trailing twelve months) based upon the most recent dividend which causes distortion for some companies. Southern Peru Copper Corp. (SCCO) is one such example - the trailing twelve month calculation is around 6.1% which is still quite impressive. However, the stock is down substantially from the beginning of the year.

The other challenge with a list like this is that it does not comment on the sustainability of the dividend. For example, Nokia (NOK) has a surging dividend yield due to a rapidly declining stock price. Will NOK be able to sustain its dividend despite a challenging marketplace for its products?

In order to help provide some perspective, the following table shows each ticker with its recent closing price as well as the 52 week highs and lows. A stock trading near the 52 week low and far from the 52 week high might be posting a high dividend yield based on historical results that will not be repeated and are already reflected in the stock's price.

52 Week Trading Range
Ticker Recent Price (July 5, 2011) Low High % Recent from Low % Percent from low relative to high
HHS 8.30 7.62 13.56 8% 11%
LMT 80.97 68.04 82.27 16% 91%
CZZ 12.39 9.85 14.57 21% 54%
UPS 73.78 56.76 76.47 23% 86%
RYAAY 28.66 26.58 33.09 7% 32%
TAP 45.06 42.18 50.93 6% 33%
VFC 111.10 69.91 111.41 37% 99%
ELUXY 49.57 38.51 58.65 22% 55%
PHG 25.41 23.36 33.90 8% 19%
VOLVY 17.63 11.02 19.64 37% 77%
GPC 55.58 39.44 55.90 29% 98%
AZN 51.08 45.40 53.50 11% 70%
SJR 22.82 18.42 22.97 19% 97%
CODI 16.59 13.13 18.50 21% 64%
THO 28.89 23.24 37.71 20% 39%
ASCA 23.91 13.77 23.91 42% 100%
TNH 138.60 67.80 141.88 51% 96%
SHLM 25.51 17.05 25.57 33% 99%
PVR 26.95 20.89 29.00 22% 75%
NOK 6.32 5.85 11.73 7% 8%
PT 9.75 9.53 15.24 2% 4%
HPQ 36.47 34.26 48.99 6% 15%
JKHY 30.50 23.48 33.99 23% 67%
CAJ 47.70 37.17 52.26 22% 70%
ELNK 7.82 7.41 9.27 5% 22%
STX 16.20 10.14 18.22 37% 75%
TYC 49.69 34.43 52.33 31% 85%
VMC 39.56 35.70 47.38 10% 33%
MAS 12.27 10.05 14.77 18% 47%
DE 84.84 54.50 99.24 36% 68%
MDC 25.29 24.18 31.80 4% 15%
GE 19.04 13.88 21.52 27% 68%
IP 29.87 19.88 32.86 33% 77%
AT 15.47 12.43 15.85 20% 89%
MOLX 26.00 17.65 28.22 32% 79%
CSL 49.58 28.05 50.55 43% 96%
CALM 32.48 26.74 33.93 18% 80%
BGS 21.16 10.32 21.17 51% 100%
NKE 91.74 67.21 92.30 27% 98%
WY 22.15 6.70 25.20 70% 84%
LEG 24.76 19.01 26.37 23% 78%
NEM 54.37 50.39 64.94 7% 27%
VIVO 24.66 16.79 24.71 32% 99%
NHC 48.64 33.78 49.57 31% 94%
IHG 21.17 15.24 23.28 28% 74%
AFL 46.45 43.12 59.28 7% 21%
SLF 30.51 22.77 34.42 25% 66%
AJG 28.65 24.29 31.62 15% 59%
OB 13.15 12.63 16.26 4% 14%
BBEP 19.73 14.45 23.07 27% 61%
PVD 72.35 42.27 86.91 42% 67%
TX 30.49 28.46 43.26 7% 14%
GSK 43.26 33.78 43.74 22% 95%
SCCO 32.71 26.44 49.59 19% 27%
WSO 67.89 51.35 72.76 24% 77%
SJT 24.38 21.48 27.67 12% 47%
PAC 40.97 28.18 42.72 31% 88%
WWE 9.64 9.13 16.55 5% 7%
NKA 17.02 16.25 22.09 5% 13%
DPS 42.74 33.73 42.74 21% 100%
CMP 86.80 70.68 97.61 19% 60%
XRX 10.57 7.91 12.01 25% 65%
DLX 26.00 16.73 28.12 36% 81%
ENP 21.69 17.04 25.29 21% 56%
TLP 35.22 29.78 40.00 15% 53%
SEOAY 10.57 7.24 12.48 32% 64%
KMB 66.52 60.19 68.43 10% 77%
STON 28.10 20.39 33.20 27% 60%
RRD 20.03 14.96 21.34 25% 79%
SID 12.60 11.81 18.33 6% 12%
TRI 37.37 34.03 41.95 9% 42%
GSH 21.13 16.76 22.26 21% 79%
ARR 7.50 6.12 8.08 18% 70%
TRK 14.40 12.93 16.48 10% 41%
MAT 27.91 20.66 27.99 26% 99%
TAL 34.87 21.14 38.29 39% 80%
MCD 85.64 66.11 85.65 23% 100%
AEO 12.91 11.79 17.36 9% 20%
WMT 53.39 48.00 57.57 10% 56%
WAG 42.73 26.36 45.18 38% 87%
HD 36.59 27.07 38.48 26% 83%
SVU 9.40 7.23 12.40 23% 42%
UNTD 6.25 4.82 7.46 23% 54%
BBY 32.24 28.15 44.86 13% 24%
STRA 131.17 116.20 239.51 11% 12%
LDR 62.98 55.42 68.74 12% 57%
DBD 31.67 25.94 36.94 18% 52%
TSM 12.72 9.40 13.88 26% 74%
MSFT 26.03 23.27 28.87 11% 49%
IFSIA 19.88 10.50 19.88 47% 100%
CTB 19.72 16.19 26.98 18% 33%
MO 26.60 20.31 28.06 24% 81%
KNX 17.12 15.85 22.18 7% 20%
WM 37.62 31.73 39.61 16% 75%
NMM 18.41 15.23 21.38 17% 52%
CWT 18.67 17.03 19.19 9% 76%
Source: Data provided by Zacks.com services and downloaded on July 6, 2011

The above chart shows that approximately one third of the listed stocks are trading within 15% of their 52 week low. Furthermore, in several cases, the stock is substantially off of its 52 week high. For example, Strayer Education (STRA) is almost down 50% from its high.

I also looked at the relative distance of the stock from the 52 week low and the 52 week high. In this case, the smaller the number, the closer to the low (with a value of 0% for a stock at the 52 week low) and the higher the number the closer to the 52 week high.

Conclusion
Chasing dividend yields can prove to be challenging and requires additional work than just looking for a high yield. Mathematically, yield is simply some accounting for the dividend divided by price. A yield might be climbing simply because the stock price is falling.

The above lists also show that many of the industry dividend leaders are very common stocks including Nike (NKE), Wal-Mart (WMT) and McDonald's (MCD). These companies represent well known brands with consistent track records and market leading positions.

Disclosure: I am long GSK.

Disclaimer: This article is for informational and educational purposes only and shall not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security.

Source: Top Paying Dividend Stocks by Industry