S&P Dow Jones Indices Reports U.S. Indicated Dividend Payments Increased $12.9 Billion in Q2 2021

Rhea-AI Summary

S&P Dow Jones Indices reported a significant rebound in U.S. dividend payments, with indicated net changes at $12.9 billion for Q2 2021, up from $18.0 billion in Q1 2021. Over the past year, net dividends rose to $38.0 billion, contrasting a decline of $22.7 billion in the previous year. The report noted a total of 568 dividend increases in Q2, a 132.8% increase year-over-year. The S&P 500's dividend payout reached $123.4 billion in Q2 2021, while per share dividends slightly fell to $14.58. The current climate suggests growing corporate confidence and a potential record payout for 2021.

Positive

• Net dividend changes rose to $12.9 billion in Q2 2021 from $18.0 billion in Q1 2021.
• Total dividend increases reached $15.4 billion in Q2 2021, compared to $6.7 billion in Q2 2020.
• 568 dividend increases were reported in Q2 2021, a 132.8% year-over-year rise.
• S&P 500 dividend payments totaled $123.4 billion in Q2 2021, up from $119.0 billion in Q2 2020.

Negative

• S&P 500 per share dividends slightly decreased to $14.58 in Q2 2021 from $14.68 in Q1 2021.
• Total dividends paid over the 12-month period declined to $484.5 billion from $495.5 billion.

NEW YORK, July 7, 2021 /PRNewswire/ -- S&P Dow Jones Indices announced today that indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $12.9 billion during Q2 2021, compared to $18.0 billion in Q1 2021, $9.5 billion in Q4 2020, -$2.3 billion in Q3 2020, and -$42.5 billion in the COVID-inspired Q2 2020.

For the 12-month June 2021 period, the net dividend rate increased $38.0 billion, compared to a net declined of $22.7 billion for 12-month June 2020 period, as increases were $58.1 billion versus $46.9 billion, and decreases were $20.0 billion compared to $69.6 billion for 2020 period.  

"Dividends are starting to be back in vogue as many companies that suspended their dividends have started to pay again, while others who decreased their dividends or left them unchanged in 2020, have resumed increasing their payments," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The overall increase in U.S. common dividends stems from the quick vaccination rate, which has led to significant increases in consumer spending and fueled U.S. record profits and cash-flow."

Silverblatt continued, "given the general acceptance of the reopening and absent a virus upswing, corporate confidence should continue to improve, as more return to resuming dividend payments and increasing them. At this point, for the S&P 500, 2021 is well on its way to a record payout with a 5% increase in the actual cash payments in shareholders pockets."

S&P 500 Dividends

On a per share basis, S&P 500 Q2 2021 dividend payments for the S&P 500 decreased 0.7% to $14.58 from Q1 2021's $14.68 and were up 1.6% from the Q2 2020 $14.35 payment. On an aggregate basis, index components paid $123.4 billion in dividends in the quarter, down from $123.9 billion in Q1 2021 and up from the $119.0 billion in Q2 2020.  For the 12-month June 2021 period, the index paid $57.87 per share, down from the prior period's $59.68, with an aggregate $484.5 billion to shareholders, compared to $495.5 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):

• 568 dividend increases were reported during Q2 2021 compared to 244 during Q2 2020, a 132.8% year-over-year increase.
• Total dividend increases were $15.4 billion for the period, up from $6.7 billion for Q2 2020.
• For the 12-month June 2021, 2,403 issues increased their payments, compared to 2,084 issues for the prior period, a 15.3% increase.
• Total dividend increases for the 12-month June 2021 period were $58.1 billion for the period, up from $46.9 billion for the prior period.

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

• 29 issues decreased dividends during Q2 2021, compared to 639 during Q2 2020, a 95.5% year-over-year decrease.
• Dividend decreases were $2.5 billion for the period, down from $49.2 billion for Q2 2020.
• For the 12-month June 2021 period, 252 issues decreased their dividend payments, compared to 941 decreases during the prior period, a 73.2% decrease.
• Dividend decreases were $15.4 billion for the 12-month 2021 period, an improvement from $27.0 billion for the prior period.

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 21.0% in Q2 2021, down from 21.4% in Q1 2021, and down from 24.2% in Q2 2020.
• The weighted indicate dividend yield for paying issues was 2.46% in Q2 2021, down from 2.48% in Q1 2021, and down from 3.23% for Q2 2020. The average indicated yield decreased to 2.76% for Q2 2021, down from Q1 2021's 2.80%, and the 3.28% for Q2 2020.

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

• 386 issues, or 76.4%, within the S&P 500 currently pay a dividend, up from 385 for Q1 2021 (76.2%) and up from the 380 which were paying in Q2 2020, as 27 of the 30 members of the Dow Jones Industrial Average^® pay a dividend.
• 63.3% of S&P MidCap 400^® issues now pay a dividend, up from 62.5% for Q1 2021 and up from 58.8% in Q2 2020; 50.4% of S&P SmallCap 600^® issues pay a dividend, up from 49.4% in Q1 2021 and up from 45.8% in Q2 2020.
• Yields across market-cap sizes decreased from Q1 2021 and remained significantly lower than Q2 2020. Large-cap yields decreased to 1.38% (1.47% for Q1 2021 and 1.84% for Q2 2020), mid-caps to 1.20% (1.23% for Q1 2021 and 1.62% for Q2 2020), and small-caps increased to 1.12% (1.11% for Q1 2021 and 1.44% for Q2 2020).
• The yields across dividend-paying market-size classifications were closer, but varied, with large-caps down to 1.88% (1.98% for Q1 2021 and 2.45% for Q2 2020), mid-caps at 1.94% (2.00% for Q1 2021 and 2.67% for Q2 2020) and small-caps at 2.14% (2.14% for Q1 2021 and 2.80% for Q2 2020).

For more information about S&P Dow Jones Indices, please visit www.spdji.com.

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: www.spdji.com.

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SOURCE S&P Dow Jones Indices

FAQ

What were the total U.S. dividend payments in Q2 2021?

U.S. dividend payments in Q2 2021 totaled $123.4 billion.

How much did indicated net changes for dividends increase in Q2 2021?

Indicated net changes for dividends increased by $12.9 billion in Q2 2021.

What is the dividend payout per share for S&P 500 in Q2 2021?

The dividend payout per share for S&P 500 in Q2 2021 was $14.58.

How many dividend increases were reported in Q2 2021?

There were 568 dividend increases reported in Q2 2021.

What is the trend in dividend payments compared to last year?

Dividends show a positive trend, with a $38.0 billion increase compared to a $22.7 billion decrease last year.