S&P Dow Jones Indices reports a $9.5 billion increase in U.S. Common Indicated dividend payments in the third quarter of 2024 as dividend growth slows

• In the third quarter of 2024, common dividends in the USA were increased $14.1 billion31.1% less than $20.4 billion in the second quarter of 2024 and decreased by 21.9% $18.0 billion in the third quarter of 2023.

• In the third quarter of 2024, common US dividends were cut $4.6 billionan increase of 3.9% compared to $4.4 billion in the second quarter of 2024 and decreased by 50.5% $9.2 billion in the third quarter of 2023.

• In the third quarter of 2024, the net dividend rate change increased $9.5 billion.

• For the last 12 months September 2024US usual dividend increases were $74.7 billion 16.9% more than in the 12th month September 2023 Period $63.9 billion; Declines fell by 26.4% $19.5 billion compared to $26.4 billion for the previous 12-month period.

• The net 12 month payment September 2024 stated dividend increase was $55.3 billion compared to $37.5 billion for the last 12 months September 2023 Period.

NEW YORK, Oct 9, 2024 /PRNewswire/ — S&P Dow Jones Indices announced today Net dividend changes (increases less decreases) for domestic U.S. common stocks increased $9.5 billion in the third quarter of 2024 compared to $16.0 billion Increase in the second quarter of 2024 and the $8.8 billion Increase in the third quarter of 2023. Increases were $14.1 billion against $20.4 billion for Q2 2024 and $18.0 billion in the third quarter of 2023. Declines were $4.6 billion compared to $4.4 billion in the second quarter of 2024 and $9.2 billion in the third quarter of 2023.

For the last 12 months September 2024the net dividend ratio increased $55.3 billion compared to the network $37.5 billion for the last 12 months September 2023. The time had come for 2023 $36.5 billion compared to 2022 $68.2 billion and 2021 $69.8 billion; The net change in 2020 was negative as 43 S&P 500 issues suspended their dividends.$40.8 billion. Increases for the 12th month September 2024 period were $74.7 billion compared to its predecessor $63.9 billionand acceptances were $19.5 billion compared to $26.4 billion.

“Dividends continued to rise in the third quarter, but at a slower pace. The third quarter lacked the big start of the first half of the year, when Brookings, Meta Platforms, Salesforce and Alphabet started paying with a $16.4 billion compared to Intel $2.1 billion Suspension of dividend this quarter. “Companies are shying away from making larger dividend commitments due to economic uncertainty,” he said Howard SilverblattSenior Index Analyst at S&P Dow Jones Indices.

Silverblatt continued: “With the FOMC interest rate cut underway and record second-quarter earnings, as well as projected record third- and fourth-quarter earnings, companies may feel more comfortable allocating funds for larger dividend increases. Uncertainty remains for the remainder of 2024.” The impact on the economy and the extent of expected interest rate cuts are likely to dampen the extent of dividend increases. However, dividend growth is expected to continue selectively, which would allow for a higher payout that performs better in the first three years than most other quarters this year with their record profits and an expected record dividend payment for 2024. In addition, it is expected that “The S&P 500 large caps will report a 6% increase in dividend payments for 2024, compared to a 5.1% increase in 2023 and a 10.8% increase seen in 2022.”

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Silverblatt concluded: “The striking conclusion is that many companies have the ability and cash flow to increase their dividend payments, but remain concerned about the economy, government spending and tax policy. Given the ongoing economic growth with lower interest rates and relatively low interest rates.” Given the unemployment rate, a clearer picture of possible policies should emerge after the election, allowing companies to better assess their future commitment.

S&P 500^® Dividends

On a per-share basis, S&P 500 dividend payments were a record in the third quarter of 2024, as payments rose 2.2% $18.68 per share from Q2 2024 $18.28 and increased by 8.3% compared to the third quarter of 2023 $17.26 Payment. The index has paid off since the beginning of the year $55.02 per share, increased from $51.93 for the same period in 2023. For the 12 months to the end September 2024the index paid a record $73.40 per share, increased from $69.31 for the previous 12-month period.

Additional findings from S&P Dow Jones Indices’ quarterly analysis of U.S. dividend activity include:

Dividend increases (defined as increasing or initiating dividend payments):

• There were 480 dividend increases reported in the third quarter of 2024, compared to 448 in the third quarter of 2023, representing a year-over-year increase of 7.1%.

• Overall, dividend increases were made $14.1 billion for the quarter, decreased from $18.0 billion in the third quarter of 2023.

• For the 12 months ending in September 20242,522 issues increased their payments, a decrease of 3.8% compared to the 2,621 issues in the 12 months to the end September 2023.

• Total dividend increases for the 12-month period were $74.7 billionupwards from $63.9 billion in the previous 12-month period.

Dividend declines (defined as a reduction or suspension of dividend payments):

• 27 issues reduced dividends in the third quarter of 2024, a decline of 56.5% year-on-year, compared to 62 issues in the third quarter of 2023.

• Dividend cuts were $4.6 billion in the third quarter of 2024 compared to $9.2 billion in the third quarter of 2023.

• For the 12 months ending in September 2024140 issues reduced their dividend payments, a fall of 70.8% compared to the 479 cuts in the previous 12-month period.

• Dividend cuts were $19.5 billion for the current 12-month period, a decrease of 26.4% compared to the previous 12-month periods $26.4 billion.

Domestic common issues not included in the S&P 500 (for issues yielding 10% or less):

• The share of non-S&P 500 domestic dividend-paying common issues increased to 20.4% from 20.3% in the second quarter of 2024 and was unchanged from 20.4% in the third quarter of 2023.

• The weighted indicated dividend yield for paying issues was 2.69% in the third quarter of 2024, down from 2.92% in the second quarter of 2024 and down from 3.14% in the third quarter of 2023. The average indicated yield decreased in the third quarter of 2024 to 3.18%, compared to 3.37% in the second quarter of 2024 decrease from 3.50% in the third quarter of 2023.

Dividends for large, medium and small companies:

• 404 problems or 80.3% within the S&P 500 currently pays a dividend, up from 403 paid in Q2 2024 and up from 401 paid in Q3 2023; 27 of the 30 voters within the Dow Jones Industrial Average^® pay a dividend with an average yield of 2.03% for all issues and 2.25% for paying issues.

• 66.6% of them S&P MidCap 400^® Issues pay a dividend, up from 65.8% in the second quarter of 2024 and up from 65.3% in the third quarter of 2023. 58.0% of them S&P SmallCap 600^® Issues pay a dividend, down from 59.1% in Q2 2024 and up from 57.1% in Q3 2023.

• In the third quarter of 2024, returns mostly declined, while large-cap yields (as their prices rose significantly more) fell to 1.29% (1.35% for the second quarter of 2024 and 1.63% for the third quarter of 2023 ) fell and mid-cap returns fell to 1.42% (1.52% for Q2 2024 and 1.71% for Q3 2023) and small caps fell to 1.60% (1.81% for Q2 2024 and 1.95% for Q3 2023).

• The returns across Dividend payment Classification of market sizes varied, with large caps decreasing to 1.55% in Q3 2024 (1.61% in Q2 2024 and 2.11% in Q3 2023), mid caps decreasing to 2.11% ( 2.26% in the second quarter of 2024 and 2.54% in the third quarter of 2023). and small caps fall to 2.70% (3.06% in Q2 2024 and 3.34% in Q3 2023).

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