NEW YORK, April 10, 2013 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) were $14.5 billion during the first quarter of 2013 for U.S. domestic common stock.  The indicated dividend rate excludes special and extra one-time dividend payments, and was therefore not impacted by the massive late-year rush to avoid potential higher taxes. During Q1 2013, 944 dividend increases were reported, a 39.4% gain over the 677 dividend increases reported during Q1 2012. Of the approximately 10,000 U.S. traded issues, 139 companies decreased dividends in Q1 2013 compared to 35 companies in the Q1 2012. For the 12 months ending March 2013, there were 3,154 positive dividend events compared to 2,120 such events in the prior 12 months, with 389 negative events in 2013, compared to 119 in the prior 12 month period.

"Dividends continued to increase in the first quarter with actual cash payments increasing 12% 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%, continue to remain near their lows at 36%. At this point, 2013 will easily surpass the 2012 record dividend payment, which speaks to the growth of dividends since 2012 payments included accelerated payments from 2013."

The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend continued to increase, reaching 46.1% in Q1 2013, up from 43.6% in Q4 2012 and was notably up from the 41.7% in Q1 2012. The paying issues in the large-cap S&P 500 reached 81.2%, a level not seen since November 1999, with all 30 members of the Dow Jones Industrial Average paying a dividend.

Silverblatt determined that the weighted dividend yield was 2.61% at the end of Q1, down from 2.80% at year-end, and slightly up from the 2.58% yield at the end of Q1 2012. "The lower yield is the result of the strong 10% equity increase in the first quarter. Dividend yields remain relatively attractive compared to other instruments such as corporate bonds, treasuries, and bank CDs, especially considering the new 'permanent' tax rate, which, while higher than last year, maintains preferential treatment for dividends," says Silverblatt.

Looking ahead, Silverblatt continues to see positive indicators for dividends, including earnings coverage and high cash levels. "The dividend cycle is solidly back on the upward track, with both investors and companies viewing them positively," adds Silverblatt. "While growth is slower than the initial 2011-12 recovery period, it is broad across sectors and has support from both investors and companies."

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SOURCE S&P Dow Jones Indices