Dividend-Rich Stocks Trail Market Despite High Yields
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P2JW300000-5-A00100-1--------NS ADVERTISEMENT Ready foratailor-made trading experience? Turn to page R16tolearn more aboutthinkorswim®. ***** MONDAY,OCTOBER 26,2020~VOL. CCLXXVI NO.99 WSJ.com HHHH $4.00 Last week: DJIA 28335.57 g 270.74 0.9% NASDAQ 11548.28 g 1.1% STOXX 600 362.50 g 1.4% 10-YR. TREASURY g 29/32 , yield 0.840% OIL $39.85 g $1.27 EURO $1.1862 YEN 104.73 Long Lines Greet Voters as Early Voting Opens in New York Second What’s News Wave of Business&Finance Covid-19 ompanies in the S&P Batters C 500 with at least aquar- ter-centuryrecordofpaying out and increasing dividends Europe have trailed the broader stock market this year. A1 Trump’strade war against Governments fighting China didn’t achievethe cen- resurgence tighten tral objectiveofreversing a U.S. decline in manufactur- curbs, hoping to avoid ing,economic datashow. A1 full-blown lockdowns The death of Lee Kun- heehands his son the reins Europe’ssecond wave of the at Samsung at atime when coronavirus pandemic is accel- the firm is on the defensive erating,prompting countries to and struggling to evolve. A1 REUTERS impose ever-moresocial-dis- Y/ Canadian oil-sands pro- KELL ducer Cenovus and Husky By Marcus Walker agreed to merge in a deal in Rome and Noemie valued at $2.89 billion, the ANDREW Bisserbe in Paris COUNTDOWN: Voters in the Bronx, like many others across New York, waited in long lines for hours to cast their ballots Sunday, the latest in a string of global second day of early voting in the state, A10A. For campaign news, see A4 and WSJ.com. tancing rules in abid to avoid a energy-industry tie-ups. B1 return to full-blown lockdowns. Blackstone struck adeal to Franceannounced adaily buy Simply Self Storagefrom record forcoronavirus infec- Brookfield, betting on asec- tions, with confirmed cases torthat has remained strong topping 52,000 on Sunday, throughout the pandemic. B1 Dividend-Rich Stocks Trail compared with around 85,000 confirmed cases on Saturday SAPsaid profit and sales in theU.S., whose population decreased in the three is around five times bigger. months through Sept. 30 as Italy,struggling with an ex- the economic impact of the Market Despite High Yields plosiverise in infections and global response to Covid-19 topping 20,000 confirmed hit core business units. B6 cases aday,imposed the U.S. manufacturers are BY AKANE OTANI broader stock market this year. margin since2007. business.And Walgreens Boots toughest restrictions on its falling behind on demand AND CAITLIN MCCABE That is even as record-lowin- Meanwhile,some of the AllianceInc., offering anearly population sinceending its for goods that Americans terest rateshaveresulted in a most iconic dividend aristo- 5% dividend yield, has plum- lockdown last spring, includ- arebuying up as the corona- Some big-name stocks are scarcity of yield acrossthe cratshavefared even worse. meted 35% as fewercustomers ing the closureofall barsand viruspandemic dragson. B1 sporting chunkydividend world. Exxon Mobil Corp., whose have trafficked itsstores due restaurantsat6p.m. In Spain, yields.Manyyield-starved in- TheS&P 500 Dividend Aris- dividend yieldissitting at a to Covid-19. the government declared a vestorsare still saying no tocratsIndex, which measures near-recordofmorethan 10%, Theslide in stock prices stateofemergency, as it did in World-Wide thanks. the performanceof65compa- has declined 51% in 2020, showsthe extent to which March, giving national author- Companiesinthe S&P 500 nies,has fallen 0.7% this year, burned by acollapse in oil many investorsare worried PleaseturntopageA7 with at least aquarter-century while the broader S&P 500 has prices.AT&TInc., with adivi- aboutthe prospectsfor divi- Europe’ssecond wave of record of paying out and in- risen 7. 3%. That puts the dend yield of morethan 7%, dend aristocrats.The indexre- Illinois tightens up and girds the coronavirus pandemic is creasing dividends—dubbed benchmark indexonpaceto has fallen 29% as the coronavi- cently offered adividend yield for pain.......................................... A3 accelerating, forcing coun- “dividend aristocrats” by Wall outperform the dividend aris- ruspandemic has weighed on of about 2.7%—humble in nom- KeyPenceaides test positive tries to impose ever-more Street—have trailed the tocratsindexbythe widest the company’s forayintoshow PleaseturntopageA4 forvirus......................................... A4 social-distancing rules in a bid to avoid a return to full-blown lockdowns. A1 Black American Tapped as Cardinal TheSenate cleared akey Samsung Business Warms procedural hurdle, voting largely along party lines to Heir Faces set up a final confirmation ABit to Biden vote Monday for Supreme Court nominee Barrett. A4 Changing Pope Francis said he would raise 13 men to the Nominee seen as less adversarial than rank of cardinal, including Industry Archbishop Wilton Gregory Sanders, more predictable than Trump of Washington, D.C.,who will become the firstBlack Amer- BY ELIZABETH KOH BY GREG IP that not to who Mr. Biden is, ican to be so honored. A3 AND KEN THOMAS but who he isn’t: Elizabeth SEOUL—Under LeeKun- Warren or Bernie Sanders, Facebook has planned hee’s leadership,Samsung Former Vice President Joe senators with a much more forthe possibility of trying Electronics Co.became aubiq- Biden is running for presi- adversarial approach to busi- to calm U.S.-election-re- uitous name world-wide with /REUTERS dent on the sort of platform ness who lost to Mr. Biden in lated conflict by deploying itsflat-screen TVsand slick that usually makes business the Democratic primary, or tools designed for what it smartphones. sweat: higher taxes on cor- President Trump, whose ad- SILBIGER calls at-risk countries. A5 That chapterclosed forthe H porations and investors, ag- ministration has been South Korean tech giant on RA gressive action to phase out marked by economic-policy Armenia and Azerbaijan, SA fighting in Nagorno-Kara- Sunday with the death of Mr. Pope Francis said he would raise 13 men to the rank of car- fossil fuels, stronger unions unpredictability. bakh, have agreed to a hu- Lee,who foryearswas inca- dinal, including Archbishop Wilton Gregory of Washington, and an expanded govern- “If Elizabeth Warren or manitarian cease-fire. A9 pacitated in ahospital bed fol- D.C., the first Black American to receive the honor. A3 ment role in health care. Bernie Sanders were the lowing a 2014 stroke. Yet many business execu- nominee, we’d be having a TheU.S.and India areex- Nowhis son, LeeJae-yong, tives and their allies are very different conversation pected to sign a military accord who has been Samsung’sde greeting the prospect of a and thinking through our en- that bolsterscooperation in the factoleader since2014, for- Biden presidency with either gagement in a very different Pacific and Indian Oceans. A8 mally takesthe reins at avery Brazilians Turn to Botox to Wipe ambivalence or relief. Credit PleaseturntopageA10 A mentor to Venezuelan different time for the tech in- opposition leader Guaidó fled dustry,whereSamsung is on Away That Quarantine Frown from Caracas to Spain in what the defensiveand struggling aides called a daring escape. A7 to evolve. iii Tariffs on China Fail Samsung had dominated in tech hardware under the late Demand soars as videoconferences and Mr.Lee.However, the indus- JOURNAL REPORT try’s gravity has shifted from masks highlight wrinkles To Aid U.S. Factories C-SuiteStrategies: products to the software that Howconsumersuse controls them, from artificial intelligencetoapps to con- BY SAMANTHA PEARSON franchise of 21 beauty clinics BY JOSH ZUMBRUN tinued climbing,toarecord$84 online reviews. R1-16 sumer data. across Brazil, Ad Clinic,with AND BOB DAVIS billion in August as U.S. import- Over the past six years, SÃOPAULO—With face herhusband. Over the past ersshiftedtocheaper sources CONTENTS Outlook....................... A2 Samsung,unlikeApple Inc., has masks obligatoryacrossmany few months,they struck deals WASHINGTON—President of goods from Vietnam, Mexico Arts in Review... A13 Personal Journal A11-12 BusinessNews.......B3 Sports....................... A14 failed to createhomegrowN Brazilian cities,the wealthy to open another nine clinics, Trump’s trade waragainst and other countries.The trade Crossword.............. A14 Technology............... B4 software or services that would arerelying ever moreonBotox even as the countryplunged China didn’t achievethe central deficit with China also has risen HeardonStreet... B10 U.S. News............. A2-6 driveloyalty forits array of to getthe perfect, wrinkle-free into recession. objectiveofreversing aU.S.de- amid the pandemic and is back Markets.................. B9-10 Weather................... A14 products. It is still asuccessful, forehead. Beauty clinics say While facemasks have cline in manufacturing,eco- to whereitwas at the start of Opinion.............. A15-17 World News........ A7-9 though vulnerable,maker of demand forthe cosmetic brought scrutinytothe fore- nomic datashow, despitetariffs theTrump administration. nearly everymajor electronics treatment has as much as dou- head and region around the on hundreds of billions of dol- Another goal—reshoring of > product on Earth, plus manyof bled here since the pandemic eyes, the traditional areas for larsofChinese goods to dis- U.S. factoryproduction—hasn’t the core componentsrequired began. Botox injections,dermatolo- courageimports. happened either.Job growth in to assemble them, from smart- “People nowlook each gists also attribute the boom Thetariffs did succeed in re- manufacturing started to slow phone displays to acomputer’s other in the eyemore, in the to videoconferencing.After ducing the trade deficit with in July 2018,and manufactur- gigabytesofstorage. eyes andthe forehead—just months of staringatthem- Chinain2019,but the overall ingproduction peaked in De- s 2020 Dow Jones & Company, Inc. All Rights Reserved Instead of atransformation wheretheir wrinkles are,” said selves during Zoom calls,Bra- U.S. trade imbalancewas bigger cember 2018. PleaseturntopageA6 Aline Medici, who owns a PleaseturntopageA10 than ever that year and has con- PleaseturntopageA2 P2JW300000-5-A00200-1--------XA A2 | Monday, October 26, 2020 ***** THE WALL STREET JOURNAL.