Dividend Growth Picks-Up in Third Quarter
Q3 Dividends Increase $12.3 billion versus $11.9 billion for 2013
PR Newswire
NEW YORK

NEW YORK, Oct. 7, 2014 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) rose $12.3 billion during the third quarter of 2014 for U.S. domestic common stock, up from the $11.9 billion increase seen in the third quarter of 2013 – equating to a 3.7% quarter-over-quarter increase. For the 12-months ending September 2014, dividend payments have increased by 27.4%, or $55.5 billion, compared to an increase of $43.6 billion in the 12-months ending September 2013.

According to S&P Dow Jones Indices, 563 dividend increases were reported during the third quarter of this year compared to the 475 increases which were reported during the third quarter of last year.  For year-to-date 2014, 2,337 issues increased their payments, up 16.3% from the 2,010 issues that increased their payments during the same period of 2013.

Of the approximately 10,000 U.S. traded issues, 65 companies decreased dividends (defined as either a decrease or suspension) in Q3 2014 compared to 44 in Q3 2013. For year-to-date 2014, 224 companies decreased their dividend payments compared to 248 decreases during the same period of 2013.   

"The good news continued for dividends in the third quarter, as the increase in the declared (announced) indicated rate is close to hitting a double-digit, year-to-date gain," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Given the number of those issuers which have a history of Q4 dividend increases, 2014 should post another double-digit gain. Along with the permanent lower tax rate on qualified dividends, investors will feel like they are getting a raise."

The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend was slightly up at 47.2% from 47.1% in Q2, but still down from the 47.4% that paid in Q3 2013. The weighted dividend yield increased to 2.50% at the end of Q3 from 2.44% at the end Q2, and the 2.60% at the end of Q3 2013.

S&P 500®
Within the large-cap S&P 500, 423 issues (84.3%) currently pay a dividend. All 30 members of the Dow Jones Industrial AverageTM pay a dividend. Silverblatt found that 67.5% and 51.2% of issues within the S&P MidCap 400 and S&P SmallCap 600 respectively, pay dividends, both up from 66.8% and 50.2% in Q2.

Yields remained higher for the S&P 500 than the mid and small-caps, however, looking only at the paying issues, small-caps are paying slightly more than the large-caps, which is due to the higher performance of the 500 over the quarter. 

Sectors
On a sector basis, using the S&P 1500 as the benchmark for U.S. domestic common issues, Silverblatt noted that 1,000 issues now pay regular cash dividends, up from 990 at the end of Q2, with Financials and Industrials both adding 4 issues during Q3. 89.9% of the issues in Financials sector paid a cash dividend, compared to only 38.6% of the Technology sector. The dividend yields for paying issues were the highest for Telecommunication sector issues, averaging 4.89% on a weighted basis, and the lowest for Consumer Discretionary sector issues, at 1.93%.

Remainder of 2014
According to Silverblatt, based on the first nine-months of payment and the current declared dividend rate for Q4 companies, regardless of their index membership, could easily set a record payment for 2014.  

"Over the last 12 months, the S&P 500 total shareholder return set a record at $866 billion as public companies continue to face on-going pressure to use their available cash to increase total shareholder returns through cash dividends and buybacks. We continue to see more companies paying more dividends and reducing their stock through buybacks," concludes 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

 

Q3 2014

563

65

8.66

Q3 2013

475

44

10.80

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,'14

2,337

224

10.43

9 Mo Sep,'13

2,010

248

7.00

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,'14

3,222

275

11.72

12 MO SEP,'13

3,276

402

8.15

       

2013

2,895

299

9.68

2012

2,887

275

10.50

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

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

Q3 2013

$9,506

$4,245

-$1,290

-$562

Q3 2014

$10,476

$2,393

-$406

-$127

         
 

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

Q3 2013

$15,602

$11,899

$13,751

-$1,852

Q3 2014

$13,401

$12,337

$12,869

-$532

  **Absolute changes

     

 

 

S&P 500

S&P MIDCAP 400

S&P SMALLCAP 600

INDEX YIELD

2.03%

1.47%

1.32%

PAYERS YIELD

2.33%

2.15%

2.35%

PAYERS

84.3%

67.5%

51.2%

 

S&P 1500

   

% OF

ISSUES

YIELD OF

SECTOR

ISSUES

YIELD

PAYERS

PAYING

PAYERS

Consumer Discretionary

239

1.47%

60.3%

144

1.93%

Consumer Staples

73

2.68%

78.1%

57

2.77%

Energy

96

2.37%

60.4%

58

2.50%

Financials

288

1.99%

89.9%

259

2.20%

Health Care

155

1.47%

35.5%

55

2.15%

Industrials

220

1.98%

80.0%

176

2.09%

Information Technology

254

1.47%

38.6%

98

2.06%

Materials

102

1.97%

81.4%

83

2.04%

Telecommunication Services

15

4.80%

66.7%

10

4.88%

Utilities

60

3.67%

100.0%

60

3.67%

S&P 1500

1502

1.97%

66.6%

1000

2.34%

 

Source: S&P Dow Jones Indices

 

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SOURCE S&P Dow Jones Indices