Dividend Growth Picks-Up in Third Quarter

Q3 Dividends Increase $12.3 billion versus $11.9 billion for 2013

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Oct 07, 2014, 10:30 ET

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 Average^TM 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