S&P Dow Jones Indices Reports U.S. Common Indicated Dividend Payments Increased $9.7 Billion During Q1 2023; 12-month Gain was $59.7 Billion

Rhea-AI Summary

S&P Dow Jones Indices reported an increase of $9.7 billion in indicated dividends for U.S. domestic common stocks during Q1 2023, down from $14.6 billion in Q4 2022 and $18.2 billion in Q1 2022. Total common dividend payments reached a record of $146.8 billion for Q1 2023, marking a 0.9% increase over the previous quarter. However, concerns over decreased consumer spending and economic slowdown may impact future dividend growth. For the 12 months ending March 2023, net indicated dividends totaled $59.7 billion, down from $70.1 billion in the previous year.

Positive

• Total dividend payments in Q1 2023 set a record at $146.8 billion.
• Dividend per share increased by 0.9% QoQ to $17.54.
• Despite declines, the overall trend indicates continued high dividend levels.

Negative

• Indicated dividend increases decreased by 14.9% compared to the previous year.
• Concerns regarding economic slowdown may hinder future dividend growth.
• Significant increase (485%) in dividend decreases in Q1 2023 compared to Q4 2021.

• Q1 2023 U.S. common dividend increases were $19.7 billion, up 21.0% from $16.3 billion in Q4 2022 and down 28.8% from $27.7 billion in Q1 2022.
• Q1 2023 U.S. common dividend decreases were $10.0 billion, up 485% from $1.7 billion in Q4 2021, and up 5.6% from $9.5 billion in Q1 2022.
• Q1 2023 net indicated dividend rate change increased $9.7 billion, compared to $14.6 billion in Q4 2022, and $18.2 billion in Q1 2022.
• For the 12-month period ending in March 2023, U.S. common dividend increases were $74.5 billion, down 14.9% from the comparable March 2022 period's $86.0 billion; decreases were down 6.7% to $14.8 billion, compared to $15.9 billion in March 2022.
• The net 12-month March 2023 indicated dividend gain was $59.7 billion, compared to $70.1 billion for March 2022. 

NEW YORK, April 4, 2023 /PRNewswire/ -- S&P Dow Jones Indices announced today that the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $9.7 billion during Q1 2023, compared to $14.6 billion in Q4 2022 and $18.2 billion in Q1 2022.

For all 12-month ending in March 2023, the net dividend rate increased $59.7 billion, compared to the net $70.1 billion ending in March 2022. Increases were $74.5 billion versus $86.0 billion, and decreases were $14.8 billion compared to $15.9 billion.

"Dividend payments continued at record levels and are expected to continue to do so for 2023. However, the size of the increases have declined and are expected to remain modest for the year as concerns over decreased consumer spending and an economic slowdown have increased," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "For 2023, the dollar aggregate of dividends are expected to increase, but at half the pace of the double-digit 2022 growth."

Silverblatt continued, "The current banking events are also expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth."

Within the S&P 500, Q1 2023 cash dividends set a record payment, and were up 0.9% over the record Q4 2022 payment and up 7.9% over Q1 2022. For the 12-month period ending in March 2023, S&P 500 dividends were up 10.1% from the March 2022 period.

"2023 is on track for another record dividend payment to shareholders, but 2022's and the 12-month March 2023's double-digit gains will be cut in half due to the state of the economy and recent events in the banking industry. The uncertain forecast for 2023 dividend payments is also driven by several factors including changes in inflation, interest rates, and consumer spending. Overall, it is clear that companies are currently protecting their dividends, even if it means reducing buybacks, which appears to be increasing," Silverblatt concluded. 

S&P 500 Dividends

On a per share basis, S&P 500 Q1 2023 dividend payments set a record, increasing 0.9% to $17.54 per share from the prior record Q4 2022's $17.39, and were up 7.9% from Q1 2022 $16.25 payment. On an aggregate basis, index constituents paid a record $146.8 billion in dividends for the quarter, compared to $146.1 billion in Q4 2022 and up from $137.6 billion in Q1 2021. For the 12-month March period, the index paid a record $68.21 per share, up from $61.97 for the 12-month March 2022 period, with an aggregate record $573.7 billion payment to shareholders compared to the compatible period's $524.9 billion.

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

Dividend Increases (defined as either an increase or initiation in dividend payments):

• 993 dividend increases were reported during Q1 2023 compared to 963 during Q1 2022, a 3.1% year-over-year increase.
• Total dividend increases were $19.7 billion for the period, down from $27.7 billion for Q1 2022.
• For the 12-months March 2023 period, 2,797 issues increased their payments, a decrease of 5.7% compared to the 2,967 issues for the 12-month March 2022 period.
• Total dividend increases for the 12-months 2023 period were $74.5 billion, down from $86.0 billion for the 12-month March 2022 period.

Dividend Decreases (defined as either a decrease or suspension in dividend payments):

• 218 issues decreased dividends in Q1 2023, a 207% year-over-year increase compared to 71 during Q1 2022.
• Dividend decreases were $10.0 billion in Q1 2023, up from $9.5 billion in Q1 2022.
• For the 12-months March 2023 period, 463 issues decreased their dividend payments, a 162% decrease compared to the 177 decreases in the 12-month March 2022 period.
• Dividend decreases were $14.8 billion for the 12-months, a 6.7% decrease from the prior 12-month 15.9 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 19.9% in Q1 2023, compared to 20.0% in Q4 2022 and up from 19.8% in Q1 2022.
• The weighted indicated dividend yield for paying issues was 2.99% in Q1 2023, down from 3.01% in Q4 2022 and up from 2.62% in Q1 2022. The average indicated yield increased to 3.31% in Q1 2023, compared to Q4 2021's 3.21% and up from 2.92% in Q1 2022.

Large-, Mid-, and Small-Cap Dividends:

• 397 issues, or 78.9%, within the S&P 500 currently pay a dividend, down from Q4 2022's 399 (79.3%), and up from 394 (78.0%) in Q1 2022; 27 of the 30 members of the Dow Jones Industrial Average^® pay a dividend.
• 64.6% of S&P MidCap 400^® issues now pay a dividend, up from 63.8% in Q4 2022 and up from 64.5% in Q1 2022; 54.1% of S&P SmallCap 600^® issues pay a dividend, up from 52.9% in Q4 2022 and up from 51.2% in Q1 2022. 
• Yields generally declined from Q4 2022, as markets and dividends increased. Large-cap yields decreased to 1.67% (1.77% for Q4 2022 and 1.40% for Q1 2022), mid-caps decreased to 1.69% (1.70% for Q4 2022 and 1.41% for Q1 2022), and small-caps increased to 1.73% (1.69% for Q4 2022 and 1.32% for Q1 2022).
• The yields across dividend-paying market-size classifications also varied, with large-caps at 2.13% (2.19% in Q4 2022 and 1.85% in Q1 2022), mid-caps at 2.57% (2.58% in Q4 2022 and 2.17% in Q1 2022) and small-caps at 3.07% (2.92% in Q4 2022 and 2.38% in Q1 2022). 

For more information about S&P Dow Jones Indices, please visit https://www.spglobal.com/spdji/en/.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit https://www.spglobal.com/spdji/en/.

S&P DJI MEDIA CONTACTS:

April Kabahar, Head of Communications
(+1) 917 796 3121 april.kabahar@spglobal.com

Alyssa Augustyn, External Communications – Americas
(+1) 773 919 4732 alyssa.augustyn@spglobal.com 

INDEX INVESTMENT STRATEGY:

Howard Silverblatt, Senior Index Analyst
(+1) 973 769 2306 howard.silverblatt@spglobal.com 

 

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SOURCE S&P Dow Jones Indices

FAQ

What was the total U.S. common dividend payment reported by SPGI in Q1 2023?

The total U.S. common dividend payment for Q1 2023 was a record $146.8 billion.

How much did indicated dividends increase in Q1 2023 for SPGI?

Indicated dividends increased by $9.7 billion in Q1 2023.

What concerns are affecting SPGI's dividend growth in 2023?

Concerns over decreased consumer spending and an economic slowdown are impacting expected dividend growth.

How does the $59.7 billion net dividend rate for March 2023 compare to the previous year?

The net dividend rate for March 2023 was $59.7 billion, down from $70.1 billion for the same period in the previous year.

What is the outlook for dividends from SPGI for the remainder of 2023?

Although dividends are expected to remain high, growth rates are anticipated to be modest compared to 2022.