- Q2 2024 U.S. common dividend increases were $20.4 billion, down 10.0% from $22.7 billion in Q1 2024 and up 108% from
$9.8 billion in Q2 2023.
- Q2 2024 U.S. common dividend decreases were $4.4 billion, down 34.4% from $6.7 billion in Q1 2024, and down 20.7% from
$5.5 billion in Q2 2023.
- Q2 2024 net indicated dividend rate change increased
$16.0 billion.
- The 12-months ending June
2024, U.S. common dividend increases were $78.7 billion, up 21.1% from the 12-month
June 2023 period's $65.0 billion; decreases were up 29.2% to
$24.1 billion, compared to
$18.7 billion for the prior 12-month
period.
- The net 12-month June 2024
indicated dividend increase was $54.6
billion, compared to $46.3
billion for the prior 12-month June
2023 period.
NEW
YORK, July 3, 2024 /PRNewswire/ -- S&P Dow
Jones Indices announced today that the indicated dividend net
changes (increases less decreases) for U.S. domestic common stocks
increased $16.05 billion during
Q2 2024, compared to the $16.03
billion increase in Q1 2024 and the $4.3 billion increase in Q2 2023. Increases were
$20.4 billion versus $22.7 billion for Q1 2024 and $9.8 billion in Q2 2023, and decreases were
$4.4 billion compared to $6.7 billion in Q1 2024 and $5.5 billion in Q2 2023. Alphabet's
initiation accounted for $9.3 billion
of the Q2 2024 increase, as Q1 2024's Brookings, Meta Platforms and
Salesforce initiations accounted for $7.2
billion.
For the 12-months ending June
2024, the net dividend rate increased $54.6 billion, compared to the net $46.3 billion for the 12-months ending
June 2023. For 2023, it was up
$36.5 billion compared to 2022's
$68.2 billion, 2021's $69.8 billion, with the 2020 net change negative,
as 43 S&P 500 issues suspended their dividends, at
-$40.8 billion. Increases for the 12
months June 2024 were $78.7 billion versus $65.0
billion, and decreases were $24.1
billion compared to $18.7
billion.
"The number of dividend increases again rose in Q2 2024 compared
to the previous quarter, but still trailed in comparison 12-month
year-over-over as companies continued to remain cautious when
committing to future payments. While markets moved higher in Q2
2024, the market gain was not as large or as broad as the previous
Q1 period, as interest rates, while down, remained higher for
longer, coupled with uncertain forward FOMC actions. Dividend
decreases declined as dividend breadth (increases/decreases)
reached 25.6, the strongest breadth since Q2 2007's 30.1, which
quantifies the upward movement," said Howard Silverblatt, Senior Index Analyst at
S&P Dow Jones Indices.
Silverblatt continued: "For the rest of 2024, the continued
uncertainty over the economy and the timing of expected interest
rate cuts will likely limit the size of dividend increases. Absent
an economic or geopolitical event, dividend growth is expected to
selectively continue. S&P 500 large caps have performed better
than most in the first half of 2024, as the Magnificent 7 have
dominated the returns. The index is expected to post a 6% increase
in dividend payments for 2024 compared to its 5.1% increase in 2023
and the 10.8% increase seen in 2022."
Silverblatt also noted that following the Fed's positive stress
test results and post the first half close, six major banks (BAC,
C, GS, JPM, MS and WFC) increased their annual dividends by
$3.5 billion, with an average
increase of 9.1%. With earnings season around the corner,
Silverblatt expects more increases to come.
Silverblatt concluded: "The noticeable take-away for both the
first and second quarter of 2024 were the large-caps. In April,
Alphabet initiated a $9.3 billion
dividend rate, joining the Q1 dividend initiations from Bookings
($1.2 billion), Meta Platforms
($4.4 billion) and Salesforce
($1.5 billion), and accounting for
53% of the S&P 500's year-to-date indicated dividend gain.
While the gains without the initiations are still seen as setting a
record S&P 500 dividend payment for 2024, their forward cash
commitment to dividends will significantly increase the payout and
give investors and non-paying Boards something to think about."
S&P 500® Dividends
On a per share basis, S&P 500 Q2 2024 dividend payments
increased 1.2% to $18.28 per share
when compared to Q1 2024's $18.06 and
is up 6.7% from Q2 2023's $17.13
payment (the record is Q4 2023 at $18.38). On an aggregate basis, index
constituents paid $153.4 billion in
dividends for the quarter, up from $151.6
billion paid in Q1 2024 and up from $143.2 billion in Q2 2023. For the 12-months
ending June 2024, the index paid a
record $71.98 per share, up from
$68.71 for the prior 12-month period,
with an aggregate record $603.3
billion payment to shareholders compared to the prior
period's $576.4 billion.
Additional findings from S&P Dow Jones Indices' quarterly
analysis of U.S. dividend activity includes:
Dividend Increases (defined as either an increase or
initiation in dividend payments):
- 539 dividend increases were reported during Q2 2024 compared to
460 during Q2 2023, a 17.2% year-over-year increase.
- Total dividend increases were $20.4
billion for the quarter, up from $9.8
billion in Q2 2023.
- For the 12-months ending in June
2024, 2,490 issues increased their payments, a decrease of
7.8% compared to the 2,702 issues for the 12-months ending in
June 2023.
- Total dividend increases for the 12-month period were
$78.7 billion, up from $65.0 billion in the prior 12-month period.
Dividend Decreases (defined as either a decrease or
suspension in dividend payments):
- 21 issues decreased dividends in Q2 2024, a 67.7%
year-over-year decrease compared to 65 issues in Q2 2023.
- Dividend decreases were $4.4
billion in Q2 2024, compared to $5.5
billion in Q2 2023.
- For the 12-months ending in June
2024, 175 issues decreased their dividend payments, a 63.3%
decrease compared to the 477 decreases within the prior 12-month
period.
- Dividend decreases were $24.1
billion for the current 12-month period, a 29.2% increase
from prior 12-month period's $18.7
billion.
Non-S&P 500 Domestic Common Issues (for issues yielding
10% or less):
- The percentage of non-S&P 500 domestic dividend-paying
common issues decreased to 20.3% from Q1 2024's 20.5% and was up
from Q2 2023's 20.1%.
- The weighted indicated dividend yield for paying issues was
2.92% in Q2 2024, up from 2.86% in Q1 2024 and down from 3.09% in
Q2 2023. The average indicated yield increased to 3.37% in Q2 2024
compared to Q1 2024's 3.28% and was down from 3.42% in Q2
2023.
Large-, Mid-, and Small-Cap Dividends:
- 403 issues or 80.1% within the S&P 500 currently pay
a dividend, down from 404 in Q1 2024 and the same as Q2 2023; 28 of
the 30 constituents within the Dow Jones Industrial
Average® pay a dividend with an average yield of
2.23% for all issues and 2.39% for the paying issues.
- 65.8% of S&P MidCap 400® issues pay a
dividend, up from 65.6% in Q1 2024 and up from 64.6% in Q2 2023.
59.1% of S&P SmallCap 600® issues pay a
dividend, down from 59.7% in Q1 2024 and up from 55.4% in Q2
2023.
- Yields mostly increased for Q2 2024, as large-cap yields
decreased (as their prices increased significantly more) to 1.35%
(1.38% for Q1 2024 and 1.55% for Q2 2023), mid-caps increased to
1.51% (1.48% for Q1 2024 and 1.63% for Q2 2023), and small-caps
increased to 1.81% (1.77% for Q1 2024 and 1.73% for Q2 2023).
- The yields across dividend-paying market-size
classifications varied with large-caps declining to 1.61% (1.72% in
Q1 2024 and 2.01% in Q2 2023), mid-caps increasing to 2.26% (2.18%
in Q1 2024 and 2.47% in Q2 2023), and small-caps increasing to
3.06% (2.90% in Q1 2024 and 3.11% in Q2 2023).
For more information about S&P Dow Jones Indices, please
visit https://www.spglobal.com/spdji/en/.
ABOUT S&P DOW JONES INDICES
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S&P DJI MEDIA CONTACTS:
April Kabahar, Head of Communications
(+1) 917 796 3121 april.kabahar@spglobal.com
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(+1) 773 919 4732 alyssa.augustyn@spglobal.com
INDEX INVESTMENT STRATEGY:
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Index Analyst
(+1) 973 769 2306 howard.silverblatt@spglobal.com
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SOURCE S&P Dow Jones Indices