NEW YORK, Jan. 7, 2020 /PRNewswire/ -- S&P Dow Jones
Indices today announced that indicated dividend net increases
(increases less decreases) for U.S. domestic common stocks were
$10.6 billion during Q4 2019, up
44.2% from Q4 2018's $7.4 billion
increase.
For Q4 2019, aggregate increases amounted to $11.97 billion, up 1.0%, from Q4 2018's
$11.85 billion. Aggregate dividend
cuts, however, decreased 69.9% to $1.35
billion from $4.48 billion for
Q4 2018, a period which included the $3.82
billion General Electric dividend cut.
For the year ending 2019, net dividends rose $45.4 billion, compared to a gain of $58.4 billion for 2018, as increases were
$56.6 billion versus $66.5 billion, and decreases were $11.1 billion compared to $8.1 billion for the prior period.
"U.S. dividends continued upward in Q4 2019 even as the rate of
growth slowed from the prior year when companies cited their tax
savings in their statements," said Howard Silverblatt, Senior Index Analyst at
S&P Dow Jones Indices. "2019 dividend payments in the
S&P 500 posted their eighth consecutive year of record
payments. At this point, the index already has a 3.3% dividend
increase built into 2020, which is more than the recent employment
3.1% wage rate increase and before any of the more than 350
expected dividend increases for 2020. Looking at the full year
2020, absent a major event or Washington policy change, dividends could
return to their double-digit growth rate, rewarding income-seekers
in an otherwise lackluster income environment," Silverblatt
concluded.
On a per share basis, S&P 500 Q4 2019 dividend payments for
the S&P 500 increased 7.19% to a record-setting $15.21, from the Q4 2018's $14.19. On an aggregate basis, index components
paid $126.4 billion in dividends this
quarter, also a record, up from $119.8
billion in Q4 2018. For the year, the index paid a
record $56.24 per share, setting its
eighth consecutive record year, up from 2018's $53.75, with an aggregate $485.4 billion to shareholders, compared to
2018's $456.3 billion.
Additional findings from S&P Dow Jones Indices' quarterly
analysis of the dividend activity of U.S. traded issues
include:
Dividend Increases (defined as an increase in dividend
payments):
- 686 dividend increases were reported during Q4 2019, compared
to 787 during Q4 2018, a 12.8% year-over-year decline.
- Total dividend increases were $11.97
billion for the period, up from $11.85 billion for Q4 2018.
- For the 12-month period, 2,381 issues increased their payments,
compared to 2,768 issues for the prior period, a 14.0%
decrease.
- Total dividend increases were $56.59
billion for the 12-month period, down from $66.49 billion for the prior period.
Dividend Decreases (defined as either a decrease or
suspension in dividend payments):
- 74 issues decreased dividends during Q4 2019, compared to 77
during Q4 2018, a 3.0% year-over-year decrease.
- Dividend decreases were $1.35
billion for the period, down from $4.48 billion for Q4 2018.
- For the 12-month period, 338 issues decreased their dividend
payments, compared to 403 decreases during the prior period, a
24.0% year-over-year decrease.
- Dividend decreases were $11.14
billion for the 12-month period, up from $8.11 billion for the prior period.
Non-S&P 500 domestic common issues:
- The percentage of non-S&P 500 domestic dividend-paying
common issues decreased to 28.0% in Q4 2019 from 28.6% in Q3
2019.
- The weighted dividend yield for paying issues was 3.30%, down
from 3.36% for Q3 2019. The average yield decreased to 2.98%, down
from 3.06% for Q3 2019.
Large-, Mid-, and Small-Cap Dividends:
- 423 issues, or 83.8%, within the S&P 500 currently
pay a dividend, the same as Q3 2019. All 30 members of the Dow
Jones Industrial Average® pay a dividend.
- 68.9% of S&P MidCap 400® issues now pay a dividend,
up from 68.8% for Q3 2019; 52.9% of S&P SmallCap 600®
issues pay a dividend, up from 52.4% in Q3 2019.
- Yields across market-cap sizes decreased from Q3 2019.
Large-cap yields decreased to 1.86% (1.98% for Q3 2019), mid-caps
to 1.68% (1.72% for Q3 2019), and small-caps to 1.56% (1.58% for Q3
2019).
- The yields across dividend-paying market-size
classifications were closer, but varied, with large-caps down to
2.28% (2.41 for Q3 2019), mid-caps at 2.38% (2.41% for Q3 2019) and
small-caps at 2.64% (2.69% for Q3 2019).
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
ABOUT S&P DOW JONES INDICES
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companies, and governments to make decisions with confidence. For
more information, visit: www.spdji.com.
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SOURCE S&P Dow Jones Indices