Q3 2012 Dividend Rate Increases $8.8 Billion, Says S&P Dow Jones Indices $45 Billion Added Year-to-Date as Investors Search for Yield

 


 

NEW YORK, Oct. 3, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) were $8.8 billion in the third quarter of 2012, setting what is believed to be a new record dividend quarterly payout in aggregate dollars for U.S. domestic listed common stock issues.  S&P Dow Jones Indices reported 439 dividend increases during the third quarter of this year, a 25.4% gain over the 350 increases reported during the third quarter of 2011. Fifty-three companies, of the approximately 10,000 U.S. traded issues, decreased their dividend in the third quarter of 2012 compared to 23 issues this time last year.

"Dividends continue to have a great year, with actual cash payments increasing over 19% and the forward indicated dividend rate reaching a new all-time high," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Payout rates, which historically average 52%, remain near their lows at 34%. At this point, we expect to see double-digit growth in actual dividend payments for the fourth quarter of 2012 and a potential double-double gain in 2013 – depending on Washington."

The percentage of non-S&P 500 common issues (ASE, NYSE, NASD) paying a dividend again increased, to 43.4% in the third quarter from 42.7% in the second quarter, 41.7% in the first quarter and 41.4% at the end of the fourth quarter of 2011. Silverblatt also determined that yields for paying issues decreased to 2.66% at the end of the third quarter from 2.77% at the end of the second quarter.

"The yield decline was the result of a strong third quarter equity market," explains Silverblatt. "Yields remain relatively high when compared to competing income producers such as bonds, treasuries or CDs."

Additionally, Silverblatt reports that individual investors will have saved $358 billion on qualified dividend tax cuts from 2003 through the 2012 expiration date. "At this point taxes are a major concern for dividends. Under current legislation, taxes on dividends to individuals almost triples in 2013, going from 15% to 43.4%. From a planning perspective, this will force corporations to examine their return to shareholders policy, potentially pull back on dividend increases, and increase share buybacks. From an individual investor's prospective, the risk-return ratio shifts significantly since an investor would now be keeping less than 57 cents on the dollar compared to the current 85 cents," adds Silverblatt.

Looking ahead, Silverblatt is seeing many positive signs for dividends, including earnings coverage and cash assets. "Investors are seeking income and companies are increasing their aggregate payout," adds Silverblatt. "However, while companies are paying out record amounts, they are not being generous or even distributing near their historical payout rate.  It's not a matter of companies being cheap. It's a matter of them being nervous about the economy and their resources, much like most of us."

To download S&P Indices Dividend Report, please visit the following web address: http://us.spindices.com/resource-center/thought-leadership/market-commentary/ and click on "S&P Dividend Report". For more information about S&P Indices, please visit www.spindices.com.

  

YEAR

POSITIVE 

NEGATIVE 

DIVIDEND


DIVIDEND

DIVIDEND

BREADTH


ACTIONS

ACTIONS






Q3 2012

439

53

8.28

Q3 2011

350

23

15.22

Q3 2010

299

35

8.54

Q3 2009

191

113

1.69

Q3 2008

346

138

2.51

Q3 2007

439

21

20.90





9 Mo Sep,'12

1,621

121

13.40

9 Mo Sep,'11

1,304

74

17.62

9 Mo Sep,'10

1,033

117

8.83

9 Mo Sep,'09

707

730

0.97

9 Mo Sep,'08

1,399

318

4.40

9 Mo Sep,'07

1,721

58

29.67









12 Mo Sep,'12

2,270

148

15.34

12 Mo Sep,'11

2,000

102

19.61

12 Mo Sep'10

1,517

191

7.94

12 Mo Sep,'09

1,182

1,018

1.16

12 Mo Sep,'08

2,191

370

5.92

12 Mo Sep,'07

2,552

89

28.67





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

  Source: S&P Dow Jones Indices



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

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

Q3 2009

$3,687

$719

-$1,040

-$401

Q3 2010

$6,065

$0

-$951

$0

Q3 2011

$7,064

$3,227

-$669

-$9

Q3 2012

$7,976

$2,097

-$1,299

-$12







ACTIONS**

CHANGE

POSITIVE 

NEGATIVE 

Q3 2009

$5,847

$2,966

$4,407

-$1,441

Q3 2010

$7,017

$5,114

$6,065

-$951

Q3 2011

$10,969

$9,613

$10,291

-$678

Q3 2012

$11,383

$8,762

$10,073

-$1,310

  **Absolute changes
















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

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

9 MO SEP,'09

$8,943

$2,324

-$52,969

-$3,966

9 MO SEP,'10

$17,958

$2,517

-$1,751

-$227

9 MO SEP,'11

$34,681

$8,032

-$2,143

-$912

9 MO SEP,'12

$32,752

$16,084

-$3,193

-$666







ACTIONS**

CHANGE

POSITIVE 

NEGATIVE 

9 MO SEP,'09

$68,202

-$45,668

$11,267

-$56,935

9 MO SEP,'10

$22,454

$18,497

$20,476

-$1,978

9 MO SEP,'11

$45,769

$39,658

$42,713

-$3,056

9 MO SEP,'12

$52,694

$44,977

$48,836

-$3,859

  **Absolute changes
















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

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

12 MO SEP,'10

$21,090

$3,760

-$2,687

-$364

12 MO SEP,'11

$42,673

$8,941

-$2,930

-$983

12 MO SEP,'12

$42,035

$17,748

-$3,565

-$675







ACTIONS**

CHANGE

POSITIVE 

NEGATIVE 

12 MO SEP,'10

$27,901

$21,799

$24,850

-$3,051

12 MO SEP,'11

$55,527

$47,700

$51,614

-$3,913

12 MO SEP,'12

$64,024

$55,543

$59,783

-$4,241

  **Absolute changes





 

S&P Dow Jones Indices

U.S. domestic public common stock

Values in $ billions, includes 2012 estimate












TOTAL

SAVINGS BASED









DIVIDEND

ON DIRECT 









PAYMENTS

QUALIFIED OWNERSHIP


















2003-2012










S&P 500

$2,180.60

$183.46








Non-500

$1,496.80

$174.90








Total

$3,677.41

$358.36








































The above estimates assume levels of direct S&P 500 ownership and dividend qualifications based on historical data. The assumptions for non-S&P 500 are based on broader indicators and not as well documented.

About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., 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 AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets 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 ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. 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



RELATED LINKS
http://us.spindices.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.