Dividends Growth Slows in Second Quarter: S&P Dow Jones Indices Q2 Dividends Increase $12.6 billion versus $17.6 billion for 2013

NEW YORK, July 1, 2014 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) rose $12.6 billion during the second quarter of 2014 for U.S. domestic common stock but lagged the $17.6 billion increase seen in the second quarter of 2013 – equating to a 28.3% quarter-over-quarter decrease.

According to S&P Dow Jones Indices, 696 dividend increases were reported during the second quarter of this year compared to the 591 increases which were reported during the second quarter of last year.  For the first half of 2014, 1,774 issues increased their payments, up 15.6% from the 1,535 issues that increased their payments during the first half of 2013.

Of the approximately 10,000 U.S. traded issues, 57 companies decreased dividends (defined as either a decrease or suspension) in Q2 2014 compared to 65 in Q2 2013. The first half of 2014 reported 159 decreases compared to the 204 decreases during the first half of 2013.   

"The good news is that the number of dividend increases was strong again in Q2, as the 696 increases were the most since 1979," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The bad news is that the growth rate of actual aggregate cash payments has slowed, even as dividends continue to set record payments."

The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend was slightly up at 47.1% from 47.0% in Q1, and slightly down from the 47.3% that paid in Q2 2013. The weighted dividend yield decreased slightly to 2.44% at the end of Q2 from 2.48% at the end Q1.

S&P 500®
Within the large-cap S&P 500, 422 issues (84.4%) currently pay a dividend, the most since September 1998. All 30 members of the Dow Jones Industrial Average™ pay a dividend. Silverblatt found that 66.8% and 50.2% of issues within the S&P MidCap 400 and S&P SmallCap 600 respectively, pay dividends, both up from 66.3% and 49.5% in Q1.  While the index yield for the large-caps is higher than those of the mid and small-caps, the weighted yields for issues paying a dividend are more closely aligned, with small-cap payers yielding more than mid-cap payers.

"The S&P 500 offers a higher yield with a richer history of increases.  However, the income security trade-off is capital appreciation, as the small- and mid-caps have returned significantly more in stock price over the longer five- and ten- year periods," adds Silverblatt.

Sectors
On a sector basis, using the S&P 1500 as the benchmark for U.S. domestic common issues, Silverblatt noted that 88.5% of the Financials sector paid a cash dividend, compared to only 37.2% of the Technology sector. The dividend yields for paying issues were the highest for Telecommunication sector issues, averaging 4.89%, and the lowest for Consumer Discretionary sector issues, at 1.89%. 

Remainder of 2014
According to Silverblatt, based on the first half payment and the current declared dividend rate for the second half of the year, companies, regardless of their index membership, could easily set a record payment for 2014.  "The strong rate of Q2 increases, even at the lower growth rate, coupled with the number of issues that have a demonstrated history of annual increases, translates to another strong increase for dividends in 2014."

"As public companies continue to be pressured to use their available cash, total shareholder returns from both cash dividends and buybacks are at record levels. The trend of higher returns is growing - more companies are paying more dividends and buying back stocks.  At this point, the question is, how much growth will there be, and not will there be growth," remarks Silverblatt.

To download the S&P Indices Dividend Report, please visit www.spdji.com/indices/equity/sp-500 and click on "S&P 500 Monthly Dividend Report" from the "Additional Info" drop down box.

For more information about S&P Dow Jones Indices, please visit www.spdji.com.

 

YEAR

POSITIVE 

NEGATIVE 

DIVIDEND


 

DIVIDEND

DIVIDEND

BREADTH


 

ACTIONS

ACTIONS


 

 

 

 

 

Q2 2014

696

57

12.21

Q2 2013

591

65

9.09

Q2 2012

505

37

13.65

Q2 2011

444

21

21.14

Q2 2010

335

34

9.85

Q2 2009

233

250

0.93

Q2 2008

455

97

4.69

Q2 2007

542

18

30.11


 

 

 

 

6 MO JUN,'14

1,774

159

11.16

6 MO JUN,'13

1,535

204

7.52


 

 

 

 

12 MO JUN,'14

3,134

254

12.34

12 MO JUN,'13

3,240

411

7.88


 

 

 

 

 

 

 

 

2013

2,895

299

9.68

2012

2,887

275

10.5

2011

1,953

101

19.34

2010

1,729

145

11.92

2009

1,191

804

1.48

2008

1,874

606

3.09

2007

2,513

110

22.85

2006

2,617

87

30.08

2005

2,518

84

29.98

2004

2,298

62

37.06

2003

2,162

104

20.79

2002

1,756

135

13.01

2001

1,668

205

8.14

2000

1,886

137

13.77

1999

2,125

144

14.76

1999

2,125

144

14.76

  Source: S&P Dow Jones Indices

 

 

U.S. DOMESTIC COMMON MARKET (ASE, NYSE, NGM, NNM, NSC)

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

Q2 2009

$2,697

$182

-$6,641

-$1,099

Q2 2010

$6,606

$772

-$333

-$91

Q2 2011

$11,230

$1,470

-$1,056

-$601

Q2 2012

$10,994

$1,652

-$468

-$203

Q2 2013

$16,639

$3,131

-$2,058

-$125

Q2 2014

$0

$0

$0

$0


 

 

 

 

 

 

ACTIONS**

CHANGE

POSITIVE 

NEGATIVE 

Q2 2009

$62,541

-$48,634

$6,861

-$55,494

Q2 2010

$15,437

$13,384

$14,410

-$1,027

Q2 2011

$34,800

$30,045

$32,423

-$2,378

Q2 2012

$13,317

$11,975

$12,646

-$671

Q2 2013

$21,952

$17,588

$19,770

-$2,182

Q2 2014

$0

$0

$0

$0

  **Absolute changes


 

 

 

 

 


 

S&P 500

S&P MIDCAP 400

S&P SMALLCAP 600


 

 

INDEX YIELD

2.00%

1.35%

1.18%


 

 

PAYERS YIELD

2.30%

2.02%

2.18%


 

 

PAYERS

84.2%

66.8%

50.2%


 

 

  Source: S&P Dow Jones Indices


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 1500

ISSUES

YIELD

% OF

ISSUES

YIELD OF

SECTOR


 

 

PAYERS

PAYING

PAYERS

Consumer Discretionary

241

1.44%

59.8%

144

1.89%

Consumer Staples

74

2.65%

78.4%

58

2.73%

Energy

93

2.10%

59.1%

55

2.23%

Financials

288

1.92%

88.5%

255

2.14%

Health Care

153

1.54%

36.6%

56

2.20%

Industrials

217

1.89%

79.3%

172

1.99%

Information Technology

258

1.46%

37.2%

96

2.08%

Materials

101

1.89%

82.2%

83

1.96%

Telecommunication Services

15

4.81%

66.7%

10

4.89%

Utilities

61

3.45%

100.0%

61

3.45%

S&P 1500

1501

1.92%

66.0%

990

2.27%

                         

 

About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

 

SOURCE S&P Dow Jones Indices



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