Sectors

Dozens of schemes exist for classifying the work what corporations do. Each financial publication for convenience, adheres to one. These classification systems create Sector names for broad bases of business activity with industries as subsets below those sectors.

In five years of writing about dividend stocks, I’ve adhered to one system using nine business sectors and am now transitioning to a second utilizing eleven sectors.

The former, nine sector scheme, used by Seeking Alpha (SA), my blog publisher, and YahooFinance, the former source for SA referrals, showed: basic materials (BasMats), consumer goods (ConGo), financials (Fins), healthcare (Heal), industrial goods (IndiGo), services (Svcs), technology (Tec), utilities (Utes), and Conglomerates (Gloms) a twelve stock sector too small to regularly cover.

The percentage weight of each of the nine sectors by number of companies per YahooFinance in 2015 was:

The latter scheme of eleven sectors, popularized by Morningstar Reports and YCharts, my current data supplier, to which I am migrating, covers: Basic Materials, CCommunication Services, Consumer Cyclical, Consumer Defensive, Energy, Financial Services, Healthcare, Industrials, Real Estate, Technology, and Utilities.

Here is a summary of industries within the latter eleven sector Morningstar scheme:

Basic Materials:
agricultural inputs; aluminu; building materials; chemicals; coal; copper; gold; industrial metals & minerals; lumber & wood production; paper & paper products; silver; speciaty chemicls; steel.

Communication Services:
pay TV; telecom services.

Consumer Cyclical:
advertising agencies; apparel manufacturing; appare stores; auto & truck dealersips; auto manufacturers; auto parts; broadcasting-radio; broadcasting-TV; depsrtment stores; footwear & accessories; gambling; home furnishing & fistures; home improvement stores; leisure; lodging; luxury goods; marketing services; media-diversified; packaging & containers; prtsonal services; publishing; recreational vehicles; residential construction; resorts & casinos; restaurants; rubber & plastics; specialty retail; textile manufacturing.

Consumer Defensive:
beverages-brewers; beverages-soft drinks; beverages-wines & distilleries; confectioners; discount stores; eduction & training services; farm products; food distribution; grocery stores; household & personl products; packaged foods; pharmaceutical retailers; tobacco.

Energy:
oil & gas drilling; oil & gas exploration & production; oil & gas equipment & services; oil & gas integrated; oil & gas midstream; oil & gas refining & marketing.

Financial Services:
asset management; banks global; banks-regional – africa; banks-regional – asia; banks-regional – australia; banks-regional; – canada; banks-regional – europe; banks-regional – latin america; banks-regional – us; capital markets; credit services; financial exchanges; insurance-diversified; insurance-life; insurance-prpearty & casualty; insurance-reinsurance; insurance -specialtu; savings & cooperative banks; specialty finance.

Healthcare:
biotechnology; diagnostics & research; drug manufacturers-major; drug manufacturers-specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medicl distribution; medical instruments & supplies.

Industrials:
aerospace & defense; airlines; airports & air services; business equipment; business servics; conglomerates; diversified industrials; engineering & construction; farm & construction equipment;inustrial distribution; infrastructure operations; integrated shipping & logistics; metal fabrication; pollution & treatment controls; railroads; rental & leasing services; security & protection services; shipping & ports; staffing & outsourcing services; tools & accessories; truck manufacturing; trucking; waste management.

Real Estate:
general; services; diversified; healthcare facilities;hotel & motel; industrial; office; residential; retail.

Technology:
communication equipment; computer distribution; computer systems; consumer electronics; contract manufacturers; data storage; electronic components; electronic gaming & multimedia; electronics distribution; health information services; information technology services; internet content & information; scientific & technical terminals; semiconductor equipment & materials; semiconductor memory; semiconductors.

Utilities:
idiversified; independent power producers; regulated electric; regulated gas; regulated water.

The percentage weight of each of the eleven sectors by number of companies per YCharts in 2016 was: