S&P Dow Jones Indices: Q2 2012 Dividend Rate Increases $12.0 Billion

NEW YORK, July 3, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) were $12.0 billion in the second quarter of 2012, setting what is believed to be a new record dividend payout in aggregate dollars for U.S. domestic listed common stock issues.  S&P Dow Jones Indices reported 505 dividend increases during the second quarter of this year, a 13.7% gain over the 444 increases reported during the second quarter of 2011. Thirty-seven companies, of the approximately 10,000 U.S. traded issues, decreased their dividend in the second quarter of this year compared to 21 this time last year.

"Dividends had another great quarter, with actual cash payments increasing over 14% 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%, remained near their lows, at 31%. At this point, we expect to see double-digit growth in actual dividend payments for the remainder of 2012, which would equate to a 16% gain over 2011."

The percentage of non-S&P 500 common issues (ASE, NYSE, NASD) paying a dividend increased to 42.7% in the second quarter up from 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 increased to 2.77% at the end of the second quarter, from 2.58% at the end of the first quarter. The yield change was the result of both increased dividends and lower second quarter prices. "Yields remain relatively high, with the quarterly yield increase due to a combination of higher dividends and the 4% price decline," notes Silverblatt.

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 the main 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 you 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. "Dividends are back in style with investors looking for yields during a time when companies can afford to give more and want to satisfy shareholders -- all of which makes for a very positive outlook for dividends."

To download S&P Indices Dividend Report, please visit the following web address: www.marketattributes.standardandpoors.com and click on "S&P Dividend Report". For more information about S&P Indices, please visit www.standardandpoors.com/indices.

YEAR

POSITIVE 

NEGATIVE 

DIVIDEND


DIVIDEND

DIVIDEND

BREADTH


ACTIONS

ACTIONS






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,'12

1,182

68

17.38

6 Mo Jun,'11

954

51

18.71

6 Mo Jun,'10

734

82

8.95

6 Mo Jun,'09

516

617

0.84

6 Mo Jun,'08

1,053

180

5.85

6 Mo Jun,'07

1,282

37

34.65









12 Mo Jun,'12

2,181

118

18.48

12 Mo Jun,'11

1,949

114

17.10

12 Mo Jun,'10

1,409

269

5.24

12 Mo Jun,'09

1,337

1,043

1.28

12 Mo Jun,'08

2,284

253

9.03

12 Mo Jun,'07

2,588

93

27.83





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 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







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

  **Absolute changes





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

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

6 MO JUN,'09

$5,256

$1,605

-$51,929

-$3,565

6 MO JUN,'10

$11,893

$2,517

-$800

-$227

6 MO JUN,'11

$27,618

$4,805

-$1,474

-$904

6 MO JUN,'12

$24,776

$13,987

-$1,894

-$655







ACTIONS**

CHANGE

POSITIVE 

NEGATIVE

6 MO JUN,'09

$62,541

-$48,634

$6,861

-$55,494

6 MO JUN,'10

$15,437

$13,384

$14,410

-$1,027

6 MO JUN,'11

$34,800

$30,045

$32,423

-$2,378

6 MO JUN,'12

$41,311

$36,215

$38,763

-$2,548

  **Absolute changes







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

$ CHANGE-MIL

INCREASES

INITIALS

DECREASES

SUSPENSIONS

12 MO JUN,'09

$12,075

$3,566

-$53,904

-$4,104

12 MO JUN,'10

$25,950

$3,426

-$2,538

-$298

12 MO JUN,'11

$43,965

$9,696

-$2,516

-$922

12 MO JUN,'12

$24,776

$13,987

-$1,894

-$655







ACTIONS**

CHANGE

POSITIVE 

NEGATIVE

12 MO JUN,'09

$62,541

-$48,634

$6,861

-$55,494

12 MO JUN,'10

$15,437

$13,384

$14,410

-$1,027

12 MO JUN,'11

$34,800

$30,045

$32,423

-$2,378

12 MO JUN,'12

$63,610

$56,393

$60,001

-$3,608

  **Absolute changes





 

S&P 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 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(SM), 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.

It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, and their respective affiliates, parents, subsidiaries, directors, officers, shareholders, employees and agents (collectively "S&P Dow Jones Indices") does not sponsor, endorse, sell, or promote any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P Dow Jones Indices index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices or its affiliates do not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

STANDARD & POOR'S and S&P are registered trademarks of Standard & Poor's Financial Services LLC.  "Dow Jones" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").

SOURCE S&P Dow Jones Indices



RELATED LINKS
http://www.spdji.com

More by this Source

Best of Content We Love 2014 


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.