10 Stellar Service Sector High Yielders

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Includes: CATO, CRRC, DRI, EDUC, HRB, MDP, SJR, SYY, TK, WSO
by: Dividend Dog

Invest for returns, do not invest for stories or for entertainment. Investors should use long term historical metrics as an indicator of management competence and stewardship. In particular, past returns on equity demonstrate commitment to growing shareholder wealth while consistent and growing past dividend payments demonstrate commitment to shareholder income. These metrics are boring and make for terrible stories.

Many investors will ignore entire sectors because they are unfamiliar, boring, or hard to characterize. Much less interest is expressed in the service sector than in healthcare or retail, probably because investors have an idea about what kinds of firms fit in those sectors. The service sector, on the other hand, is a mix of different companies, a large number of which would require a boring introduction. Brew a pot of coffee before read financial metrics from promising stocks in the uninteresting service sector:

Watsco Inc. (NYSE:WSO) recently traded at $61.85 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of WSO paid a total of $9.36 in dividends. Of these dividend payments, a total of $7.94 were paid in the last five years.

WSO shareholders have seen a 1.5% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.5, a price-to-earnings multiple of 23.3, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 11.3% average annual return on equity.

Teekay Corporation (NYSE:TK) recently traded at $25.53 per share. At this price level, the stock has a 5.0% dividend yield. For 10 out of the past 10 fiscal years, a share of TK paid a total of $7.70 in dividends. Of these dividend payments, a total of $5.26 were paid in the last five years.

TK shareholders have suffered a -19.6% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.3, a price-to-earnings multiple of 0.0, and a price-to-sales multiple of 0.9 (trailing twelve months). Over the past decade shareholders enjoyed a 8.5% average annual return on equity.

Sysco Corp. (NYSE:SYY) recently traded at $28.9 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of SYY paid a total of $7.05 in dividends. Of these dividend payments, a total of $4.55 were paid in the last five years.

SYY shareholders have seen a 2.0% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 3.7, a price-to-earnings multiple of 14.7, and a price-to-sales multiple of 0.4 (trailing twelve months). Over the past decade shareholders savored a 32.6% average annual return on equity.

Meredith Corp. (NYSE:MDP) recently traded at $30.19 per share. At this price level, the stock has a 5.1% dividend yield. For 10 out of the past 10 fiscal years, a share of MDP paid a total of $6.52 in dividends. Of these dividend payments, a total of $4.25 were paid in the last five years.

MDP shareholders have endured a -9.3% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.7, a price-to-earnings multiple of 10.9, and a price-to-sales multiple of 1.0 (trailing twelve months). Over the past decade shareholders savored a 13.2% average annual return on equity.

H&R Block, Inc. (NYSE:HRB) recently traded at $15.37 per share. At this price level, the stock has a 5.2% dividend yield. For 10 out of the past 10 fiscal years, a share of HRB paid a total of $4.86 in dividends. Of these dividend payments, a total of $2.88 were paid in the last five years.

HRB shareholders have savored a 33.2% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 5.2, a price-to-earnings multiple of 11.6, and a price-to-sales multiple of 1.3 (trailing twelve months). Over the past decade shareholders savored a 19.1% average annual return on equity.

Educational Development Corp. (NASDAQ:EDUC) recently traded at $5.13 per share. At this price level, the stock has a 9.4% dividend yield. For 10 out of the past 10 fiscal years, a share of EDUC paid a total of $2.20 in dividends. Of these dividend payments, a total of $1.73 were paid in the last five years.

EDUC shareholders have suffered a -18.6% change in share price over the past year. At present, shares of this nano cap stock trade at a price-to-book ratio of 1.4, a price-to-earnings multiple of 16.6, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 15.4% average annual return on equity.

Darden Restaurants, Inc. (NYSE:DRI) recently traded at $43.13 per share. At this price level, the stock has a 4.0% dividend yield. For 10 out of the past 10 fiscal years, a share of DRI paid a total of $4.95 in dividends. Of these dividend payments, a total of $4.26 were paid in the last five years.

DRI shareholders have endured a -4.1% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 3.0, a price-to-earnings multiple of 12.7, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders savored a 23.1% average annual return on equity.

Courier Corporation (NASDAQ:CRRC) recently traded at $10.52 per share. At this price level, the stock has a 8.0% dividend yield. For 10 out of the past 10 fiscal years, a share of CRRC paid a total of $4.78 in dividends. Of these dividend payments, a total of $3.68 were paid in the last five years.

CRRC shareholders have suffered a -26.7% change in share price over the past year. At present, shares of this micro cap stock trade at a price-to-book ratio of 0.8, a price-to-earnings multiple of 1052.0, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 11.7% average annual return on equity.

Cato Corp. (NYSE:CATO) recently traded at $24.19 per share. At this price level, the stock has a 3.8% dividend yield. For 10 out of the past 10 fiscal years, a share of CATO paid a total of $5.40 in dividends. Of these dividend payments, a total of $3.27 were paid in the last five years.

CATO shareholders have endured a -9.4% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 2.0, a price-to-earnings multiple of 11.3, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders savored a 16.9% average annual return on equity.

Shaw Communications, Inc. (NYSE:SJR) recently traded at $18.87 per share. At this price level, the stock has a 4.8% dividend yield. For 10 out of the past 10 fiscal years, a share of SJR paid a total of $3.31 in dividends. Of these dividend payments, a total of $2.99 were paid in the last five years.

SJR shareholders have endured a -7.7% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.6, a price-to-earnings multiple of 15.5, and a price-to-sales multiple of 1.8 (trailing twelve months). Over the past decade shareholders enjoyed a 9.6% average annual return on equity.

Still awake? Great! Consider these dividend paying stocks as part of your income portfolio, even though they will not do much for your entertainment.

Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.