S&P Dow Jones Indices Reports U.S. Common Indicated Dividend Payments Increased $17.7 Billion During Q3 2022; 12-Month Gain as of September 2022 was $71.5 Billion
S&P Dow Jones Indices reported a net indicated dividend increase of $17.7 billion for Q3 2022, a slight rise from $17.6 billion in Q2 2022, but down from $20.9 billion in Q3 2021. U.S. common dividend increases totaled $19.1 billion, a 0.9% decrease quarter-over-quarter and a 14% decline year-over-year. The 12-month net dividend rate increase was $71.5 billion, up 16.4% from the previous year. Despite these gains, concerns over inflation and interest rate hikes have led to cautious growth in dividends, with projections indicating a potential record for Q4 2022.
- Net indicated dividend increase of $17.7 billion in Q3 2022.
- U.S. common dividend increases reached $86.7 billion for the 12-month period ending September 2022.
- Common dividend decreases rose to $1.4 billion in Q3 2022, a 15.8% decrease from the previous quarter.
- A notable increase in dividend cuts, with 60 issues reducing dividends in Q3 2022, up from 27 in Q3 2021.
- Q3 2022 U.S. common dividend increases were
$19.1 billion , down0.9% from$19.3 billion in Q2 2022 and down14.0% from$22.2 billion in Q3 2021. - Q3 2022 U.S. common dividend decreases were
$1.4 billion , down15.8% from$1.7 billion in Q2 2022, up9.8% from$1.3 billion in Q3 2021. - Q3 2022 net indicated dividend rate change increased
$17.7 billion , compared to$17.6 billion in Q2 2022, and$20.9 billion in Q3 2021. - For the 12-month period ending September 2022, U.S. common dividend increases were
$86.7 billion , up20.7% from September 2021's$71.8 billion ; decreases were up44.9% to$15.2 billion in the 12-month period ending September 2022, compared to$10.5 billion during the same time period in 2021. - The net indicated dividend gain in the 12-month period ending September 2022 was
$71.5 billion net, compared to$61.4 billion in the same period ending September 2021.
NEW YORK, Oct. 4, 2022 /PRNewswire/ -- S&P Dow Jones Indices announced today that indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased
For the 12-month period ending September 2022, the net dividend rate increased
"Dividend increases continue at record levels. However, the strength of the increases has declined, as concerns over interest rates, inflation and slowing consumer spending have made companies more measured and cautious in their approach to dividend increases. At this point, Q4 appears set to slightly increase, setting another quarterly and annual record," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The risk-reward tradeoff has shifted from the start of the third quarter, as the market decline has moved investors to more secure, less volatile equity dividend producing companies as dividends serve as anchors, slowing the decline."
Within the S&P 500, Q3 cash dividends set a record payment, and were up
"2023 appears set for another record payment but the key question is by how much and the answer will depend on the state of the economy and corporate profits. The uncertain forecast for 2023 dividend payments is also driven by several factors: high inflation, rising interest rates, and the consumer pull back, as more market practitioners on Wall Street are signaling a 2023 recession. Overall, it is clear that companies are currently protecting their dividends, even if it means reducing buybacks," Silverblatt concluded.
Buybacks, which set a record in Q1 2022 at
S&P 500 Dividends
On a per share basis, S&P 500 Q3 2022 dividend payments set a record, increasing
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):
- 529 dividend increases were reported during Q3 2022 compared to 584 during Q3 2021, a
9.4% year-over-year decrease. - Total dividend increases were
$19.1 billion for the period, down from$22.2 billion for Q3 2021. - For the 12-month period ending September 2022, 2,899 issues increased their payments, compared to 2,678 issues for the prior period, an
8.3% increase. - Total dividend increases for the 12-month September 2022 period were
$86.7 billion , up from$71.8 billion in the 12-month period ending September 2021.
Dividend Decreases (defined as either a decrease or suspension in dividend payments):
- 60 issues decreased dividends in Q3 2022, compared to 27 during Q3 2021, a
122% year-over-year increase. - Dividend decreases were
$1.4 billion in Q3 2022, up from$1.3 billion in Q3 2021. - In the 12-month period ending September 2022, 232 issues decreased their dividend payments, compared to 177 decreases in the 2021 period, a
31.1% increase. - Dividend decreases were
$15.2 billion in the 12-month period ending September 2022, a44.9% increase from the$10.5 billion decrease in the same period in 2021.
Non-S&P 500 Domestic Common Issues (for issues yielding
- The percentage of non-S&P 500 domestic dividend-paying common issues decreased to
19.4% in Q3 2022, compared to20.0% in Q2 2022, and20.0% in Q3 2021. - The weighted indicated dividend yield for paying issues was
3.17% in Q3 2022, up from2.98% in Q2 2021 and up from2.52% in Q3 2021. The average indicated yield increased to3.34% in Q3 2022, compared to Q2 2021's3.20% and2.86% in Q3 2021.
Large-, Mid-, and Small-Cap Dividends:
- 399 issues, or
79.3% , within the S&P 500 currently pay a dividend, up from 398 issues, or79.1% in Q2 2022, and up from 391 (77.4% ) in Q3 2021; 27 of the 30 members of the Dow Jones Industrial Average® pay a dividend. 64.3% of S&P MidCap 400® issues now pay a dividend, down from65.3% in Q2 2022 and up from63.5% in Q3 2021;52.1% of S&P SmallCap 600® issues pay a dividend, up from51.2% in Q2 2022 and up from51.1% in Q3 2021.- Yields varied and were higher than Q2 2022, as markets declined for Q3 2022 and dividends increased. Large-cap yields increased to
1.85% (1.72% for Q2 2022 and1.41% for Q3 2021), mid-caps increased to1.81% (1.71% for Q2 2022 and1.28% for Q3 2021), and small-caps increased to1.75% (1.56% for Q2 2022 and1.22% for Q3 2021). - The yields across dividend-paying market-size classifications also varied, with large-caps at
2.38% (2.18% in Q2 2022 and1.93% in Q3 2021), mid-caps at2.76% (2.56% in Q2 2022 and2.06% in Q3 2021) and small-caps at3.13% (2.82% in Q2 2022 and2.25% in Q3 2021).
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SOURCE S&P Dow Jones Indices