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S&P Dow Jones Indices Reports U.S. Common Indicated Dividend Payments Increase of $11.7 Billion in Q4 2024 As Dividend Growth Slows

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S&P Dow Jones Indices reported that U.S. common indicated dividend payments increased by $11.7 billion in Q4 2024, up from $9.5 billion in Q3 2024. Q4 dividend increases were $14.2 billion, while decreases were $2.5 billion. For the full year 2024, net dividend rate increased by $53.3 billion, compared to $36.5 billion in 2023.

The S&P 500 set a record for Q4 2024 dividend payments at $19.81 per share, up 6.0% from Q3 and 7.8% from Q4 2023. For 2024, the index paid $74.83 per share, a 6.4% increase from 2023. Dividend growth slowed in the second half of 2024, following major initiations by Brookings, Meta Platforms, Salesforce, and Alphabet in the first half.

Currently, 80.9% of S&P 500 companies pay dividends, with expectations of an 8% increase in dividend payments for 2025, compared to 6.4% in 2024.

S&P Dow Jones Indices ha riportato che i pagamenti di dividendi comuni negli Stati Uniti sono aumentati di $11,7 miliardi nel Q4 2024, rispetto ai $9,5 miliardi del Q3 2024. Gli aumenti dei dividendi nel Q4 sono stati di $14,2 miliardi, mentre le diminuzioni sono state di $2,5 miliardi. Per l'intero anno 2024, il tasso netto di dividendi è aumentato di $53,3 miliardi, rispetto ai $36,5 miliardi del 2023.

L'S&P 500 ha stabilito un record per i pagamenti di dividendi nel Q4 2024 a $19,81 per azione, in aumento del 6,0% rispetto al Q3 e del 7,8% rispetto al Q4 2023. Per il 2024, l'indice ha pagato $74,83 per azione, con un incremento del 6,4% rispetto al 2023. La crescita dei dividendi ha rallentato nella seconda metà del 2024, dopo importanti iniziative da parte di Brookings, Meta Platforms, Salesforce e Alphabet nella prima metà.

Attualmente, l'80,9% delle aziende dell'S&P 500 paga dividendi, con aspettative di un aumento dell'8% nei pagamenti di dividendi per il 2025, rispetto al 6,4% nel 2024.

S&P Dow Jones Indices informó que los pagos de dividendos comunes en EE. UU. aumentaron en $11,7 mil millones en el Q4 2024, subiendo desde los $9,5 mil millones en el Q3 2024. Los aumentos de dividendos en el Q4 fueron de $14,2 mil millones, mientras que las disminuciones fueron de $2,5 mil millones. Para todo el año 2024, la tasa neta de dividendos aumentó en $53,3 mil millones, comparado con $36,5 mil millones en 2023.

El S&P 500 estableció un récord en los pagos de dividendos del Q4 2024 con $19,81 por acción, un aumento del 6,0% respecto al Q3 y del 7,8% respecto al Q4 2023. Para 2024, el índice pagó $74,83 por acción, un incremento del 6,4% con respecto a 2023. El crecimiento de los dividendos se desaceleró en la segunda mitad de 2024, tras importantes iniciativas de Brookings, Meta Platforms, Salesforce y Alphabet en la primera mitad.

Actualmente, el 80,9% de las empresas del S&P 500 pagan dividendos, con expectativas de un aumento del 8% en los pagos de dividendos para 2025, en comparación con el 6,4% en 2024.

S&P 다우 존스 인덱스는 2024년 4분기 미국의 일반 배당금 지급이 2024년 3분기의 $9.5억 달러에서 $11.7억 달러 증가했다고 보고했습니다. 4분기 배당금 증가는 $14.2억 달러였고, 감소는 $2.5억 달러였습니다. 2024년 전체 연도 동안 순 배당금은 2023년의 $36.5억 달러에 비해 $53.3억 달러 증가했습니다.

S&P 500은 2024년 4분기 배당금 지급에 대해 $19.81 per 주식으로 기록을 세웠으며, 이는 3분기 대비 6.0% 및 2023년 4분기 대비 7.8% 증가입니다. 2024년 동안 이 지수는 주당 $74.83를 지급했으며, 이는 2023년 대비 6.4%의 증가입니다. 2024년 하반기에는 브루킹스, 메타 플랫폼스, 세일즈포스, 알파벳의 주요 이니셔티브가 있었던 첫 반기에 비해 배당금 성장이 둔화되었습니다.

현재 S&P 500 기업의 80.9%가 배당금을 지급하고 있으며, 2025년 배당금 지급이 2024년의 6.4%와 비교해 8% 증가할 것으로 예상하고 있습니다.

S&P Dow Jones Indices a rapporté que les paiements de dividendes ordinaires aux États-Unis ont augmenté de 11,7 milliards de dollars au T4 2024, contre 9,5 milliards de dollars au T3 2024. Les augmentations de dividendes pour le T4 étaient de 14,2 milliards de dollars, tandis que les diminutions étaient de 2,5 milliards de dollars. Pour l'année entière 2024, le taux net de dividendes a augmenté de 53,3 milliards de dollars, comparé à 36,5 milliards de dollars en 2023.

Le S&P 500 a établi un record pour les paiements de dividendes au T4 2024 à 19,81 $ par action, en hausse de 6,0 % par rapport au T3 et de 7,8 % par rapport au T4 2023. Pour 2024, l'indice a payé 74,83 $ par action, soit une augmentation de 6,4 % par rapport à 2023. La croissance des dividendes a ralenti dans la seconde moitié de 2024, après d'importantes initiatives de Brookings, Meta Platforms, Salesforce et Alphabet dans la première moitié.

Actuellement, 80,9% des entreprises du S&P 500 versent des dividendes, avec des attentes d'une augmentation de 8 % des paiements de dividendes pour 2025, contre 6,4 % en 2024.

S&P Dow Jones Indices berichtete, dass die Ausschüttungen von regulären Dividenden in den USA im 4. Quartal 2024 um 11,7 Milliarden US-Dollar auf 9,5 Milliarden US-Dollar im 3. Quartal 2024 gestiegen sind. Im 4. Quartal betrugen die Erhöhungen der Dividenden 14,2 Milliarden US-Dollar, während die Rückgänge 2,5 Milliarden US-Dollar betrugen. Für das volle Jahr 2024 stieg die Nettodividende um 53,3 Milliarden US-Dollar im Vergleich zu 36,5 Milliarden US-Dollar im Jahr 2023.

Der S&P 500 setzte im 4. Quartal 2024 einen Rekord für Dividendenzahlungen mit 19,81 US-Dollar pro Aktie, was einen Anstieg von 6,0 % im Vergleich zum 3. Quartal und 7,8 % im Vergleich zum 4. Quartal 2023 darstellt. Für 2024 zahlte der Index 74,83 US-Dollar pro Aktie, was einem Anstieg von 6,4 % gegenüber 2023 entspricht. Das Wachstum der Dividenden verlangsamte sich in der zweiten Hälfte von 2024, nachdem im ersten Halbjahr bedeutende Initiativen von Brookings, Meta Platforms, Salesforce und Alphabet ergriffen wurden.

Derzeit zahlen 80,9% der S&P 500-Unternehmen Dividenden, wobei für 2025 ein Anstieg der Dividendenzahlungen um 8 % im Vergleich zu 6,4 % im Jahr 2024 erwartet wird.

Positive
  • Net dividend increases of $11.7 billion in Q4 2024, up from $9.5 billion in Q3
  • Record S&P 500 dividend payments of $19.81 per share in Q4 2024
  • Full-year 2024 dividend payments increased 6.4% to $74.83 per share
  • Projected 8% increase in dividend payments for 2025
  • Dividend decreases fell 45.6% from Q3 2024 to $2.5 billion
Negative
  • Q4 2024 dividend increases down 18.8% year-over-year from $17.5 billion to $14.2 billion
  • Dividend growth slowed significantly in second half of 2024
  • Number of dividend increases decreased 10.2% year-over-year in Q4 2024

Insights

The Q4 2024 dividend data reveals several critical market dynamics. Net dividend increases of $11.7 billion represent a 23.2% improvement from Q3's $9.5 billion, though lagging 14.6% behind Q4 2023. The full-year 2024 net dividend increase of $53.3 billion marks a substantial 46% jump from 2023, indicating robust corporate financial health. The record $74.83 per share S&P 500 dividend payments in 2024 showcase strong shareholder returns despite economic uncertainties. The decline in dividend decreases by 36.7% year-over-year signals improved corporate stability. However, the slowdown in dividend growth post-tech giants' initiations suggests cautious corporate behavior ahead of policy shifts.

The dividend trends reflect broader economic policy implications. Companies' hesitation on larger dividend commitments in Q4 2024 stems from election-related policy uncertainties, particularly regarding future taxation and government spending. The anticipated interest rate cuts in 2025, combined with projected record earnings, create a favorable environment for increased dividend distributions. The 8% projected increase in S&P 500 dividend payments for 2025 suggests corporate confidence in sustained economic growth. The relatively low unemployment rate and potential monetary policy easing should provide a supportive backdrop for dividend growth, though fiscal policy clarity remains important for corporate decision-making.

The shift in dividend patterns reveals evolving corporate capital allocation strategies. While 80.9% of S&P 500 companies now pay dividends, the slower growth rate in the second half of 2024 indicates strategic restraint. The $16.4 billion annual dividend initiation from tech giants in early 2024 marks a significant shift in the sector's capital return philosophy. The improved dividend metrics across market caps, with small-cap yields rising to 1.62%, suggest broadening financial strength. Companies are maintaining strong balance sheets while awaiting policy clarity, positioning themselves for potentially more aggressive dividend increases in 2025, particularly during the historically significant February announcement period.
  • Q4 2024 U.S. common dividend increases were $14.2 billion, up 1.0% from $14.1 billion in Q3 2024 and down 18.8% from $17.5 billion in Q4 2023.
  • Q4 2024 U.S. common dividend decreases were $2.5 billion, down 45.6% from $4.6 billion in Q3 2024, and down 35.7% from $3.9 billion in Q4 2023.
  • Q4 2024 net indicated dividend rate change increased $11.7 billion.
  • For the 12-months ending December 2024, U.S. common dividend increases were $71.4 billion up 9.7% from the 12-month December 2023 period's $65.1 billion; decreases were down 36.7% to $18.1 billion compared to $28.6 billion for the prior 12-month period.
  • The net 12-month December 2024 indicated dividend increase was $53.3 billion compared to $36.5 billion for the prior 12-month December 2023 period.

NEW YORK, Jan. 8, 2025 /PRNewswire/ -- S&P Dow Jones Indices today announced the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $11.7 billion during Q4 2024, compared to the $9.5 billion increase in Q3 2024 and the $13.7 billion increase in Q4 2023. Increases were $14.2 billion versus $14.1 billion for Q3 2024 and $17.5 billion in Q4 2023. Decreases were $2.5 billion compared to $4.6 billion in Q3 2024 and $3.9 billion in Q4 2023. 

For the 12-months ending December 2024, the net dividend rate increased $53.3 billion compared to the net $36.5 billion for the 12-months ending December 2023. For 2022 it was up $68.2 billion and in 2021 it was up $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-month December 2024 period were $71.4 billion versus the previous $65.1 billion, and decreases were $18.1 billion compared to $28.6 billion in the previous period. 

"Dividend growth continued in 2024, but noticeably slowed down in the second half after Brookings, Meta Platforms, Salesforce and Alphabet started to pay at a $16.4 billion annual rate in the first half of the year. Companies remained shy of larger dividend commitments in Q4 2024 due to the election and are now awaiting new policies to formulate their business and expenditures," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.

Silverblatt continued: "Given the expectation of at least one FOMC interest rate reduction in 2025, the expected record earnings for Q4 and projected record earnings for 2025, companies may commit funds to larger dividend increases for 2025. While February historically is the largest month for dividend increases, this coming February is expected to be stronger as some companies may attempt to make up for the previous restrained approach. In 2024, S&P 500 large caps performed better than most, with record earnings, sales and dividends. For 2025, S&P 500 large caps are expected to post an 8% increase in dividend payments compared to the 6.4% increase in 2024, 5.1% increase in 2023 and the 10.8% increase seen in 2022."

Silverblatt concluded: "Many companies have the ability and cash-flow to increase their dividend payments, but remain concerned over the economy, government spending and taxing policy. Given the continued economic growth with lower interest rates and the relatively low unemployment rate, a clearer picture of potential policy should emerge in the first quarter, at which time more companies can better evaluate their future commitment."

S&P 500® Dividends

On a per share basis, S&P 500 Q4 2024 dividend payments set a record, as payments increased 6.0% to $19.81 per share from Q3 2024's $18.68 and were up 7.8% from Q4 2023's $18.38 payment. For 2024, the index paid $74.83 per share, up 6.4% from $70.30 for 2023.

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):

  • 635 dividend increases were reported during Q4 2024 compared to 707 during Q4 2023, a 10.2% year-over-year decrease.
  • Total dividend increases were $14.2 billion for the quarter, down from $17.5 billion in Q4 2023.
  • For the 12-months ending in December 2024, 2,450 issues increased their payments, a decrease of 3.8% compared to the 2,548 issues for the 12-months ending in December 2023.
  • Total dividend increases for the 12-month period were $71.4 billion, up from $65.1 billion in the prior 12-month period.

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

  • 33 issues decreased dividends in Q4 2024, a 19.5% year-over-year decrease compared to 41 issues in Q4 2023.
  • Dividend decreases were $2.5 billion in Q4 2024, compared to $3.9 billion in Q4 2023.
  • For the 12-months ending in December 2024, 132 issues decreased their dividend payments, a 65.8% decrease compared to the 386 decreases within the prior 12-month period.
  • Dividend decreases were $18.1 billion for the current 12-month period, a 36.7% decrease from the prior 12-month period's $28.6 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 declined to 20.1% from Q3 2024's 20.4% and were down from Q4 2023's 20.4%.
  • The weighted indicated dividend yield for paying issues was 2.83% in Q4 2024, up from 2.69% in Q3 2024 and down from 2.93% in Q4 2023. The average indicated yield increased to 3.19% in Q4 2024 compared to Q3 2024's 3.18% and was down from 3.23% in Q4 2023.

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

  • 407 issues or 80.9% within the S&P 500 currently pay a dividend, up from 404 in Q3 2024 and up from the 403 which paid in Q4 2023; 28 of the 30 constituents within the Dow Jones Industrial Average® pay a dividend with an average yield of 1.97% for all issues and 2.11% for the paying issues.
  • 66.1% of S&P MidCap 400® issues pay a dividend, down from 66.6% in Q3 2024 and up from 65.8% in Q4 2023. 57.6% of S&P SmallCap 600® issues pay a dividend, down from 58.0% in Q3 2024 and down from 57.8% in Q4 2023.
  • Yields were mixed for Q4 2024, as large-cap yields decreased to 1.28% (1.29% for Q3 2024 and 1.48% for Q4 2023), mid-caps increased to 1.46% (1.42% for Q3 2024 and 1.61% for Q4 2023), and small-caps increased to 1.62% (1.60% for Q3 2024 and 1.73% for Q4 2023).
  • The yields across dividend-paying market-size classifications varied with large-caps increasing to 1.56% for Q4 2024 (1.54% in Q3 2024 and 1.93% in Q4 2023), mid-caps increasing to 2.22% (2.11% in Q3 2024 and 2.39% in Q4 2023), and small-caps increasing to 2.81% (2.69% in Q3 2024 and 2.93% in Q4 2023).

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:

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

S&P DJI INDEX SERVICES:

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 dividend increase for S&P 500 companies in Q4 2024?

The net indicated dividend increase for U.S. common stocks was $11.7 billion in Q4 2024, compared to $9.5 billion in Q3 2024 and $13.7 billion in Q4 2023.

How much did S&P 500 companies pay in dividends per share for 2024?

S&P 500 companies paid $74.83 per share in dividends for 2024, representing a 6.4% increase from $70.30 in 2023.

What is the projected dividend growth rate for S&P 500 companies in 2025?

S&P 500 companies are expected to increase dividend payments by 8% in 2025, compared to the 6.4% increase seen in 2024.

What percentage of S&P 500 companies currently pay dividends?

As of Q4 2024, 407 companies or 80.9% of S&P 500 companies pay dividends, up from 404 in Q3 2024 and 403 in Q4 2023.

How did dividend decreases change in Q4 2024 compared to Q3 2024?

Dividend decreases fell by 45.6% from $4.6 billion in Q3 2024 to $2.5 billion in Q4 2024.

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