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

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Jul 03, 2012, 10:30 ET

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.

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SOURCE S&P Dow Jones Indices