Home | Wealth Management | US companies slow pace of dividend net increases

US companies slow pace of dividend net increases

By
Font size: Decrease font Enlarge font
US companies slow pace of dividend net increases

Energy issues continue to account for a disproportionate share of the cuts.

S&P Dow Jones Indices announced today that the indicated dividend net increases (increases less decreases) rose $12.5 billion during the second quarter of 2015 for US domestic common stocks, a deceleration from the $12.6 billion increase registered during the second quarter of 2014. The dollar amount decline equates to a 0.6% year-over-year slowdown in dividend increases. For the 12 months ending June 2015, dividend net increases fell 10.2% to $49.5 billion compared to an increase of $55.1 billion for the corresponding period.

"Given the current declared policies, it would take a catastrophic event (or government action) for 2015 not to be a record year."

 

Additional findings from S&P Dow Jones Indices' quarterly analysis of the dividend activity of approximately 10,000 U.S. traded issues include:

Dividend Increases (defined as an increase in dividend payments)

  • 562 dividend increases were reported during the second quarter of 2015 compared to 696 increases reported during the second quarter of 2014, a 19.3% decrease.
  • For the 12-month period ending June 2015, 3092 issues increased their payments from the 3134 issues that increased their payments during the prior 12-month period, a 1.3% increase.

Dividend Decreases (defined as either a decrease or suspension)

  • 85 companies decreased dividends in Q2 2015 compared to 57 in Q1 2014.
  • For 12-month period ending June 2015, 389 companies decreased their dividend payments compared to 254 decreases in the prior 12-month period.

Non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend

  • The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend was slightly up to 48.7% from the 48.6% during Q1 2015, and the 47.1% rate in Q2 2014.
  • The weighted dividend yield increased to 2.59% from last quarter's 2.51%, and the 2.44% seen at the end of the second quarter of 2014.

1 2 »
Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha