NEW YORK, July 5, 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 $4.3 billionduring Q2 2023, compared to $9.7 billion in Q1 2023 and $17.6 billion in Q2 2022. Increases were $9.8 billion versus $19.7 billion for Q1 2023, and decreases were $5.5 billion compared to $10.0 billion.
For all 12-months ending in June 2023, the net dividend rate increased $46.3 billion, compared to the net $74.8 billion ending in June 2022. Increases were $65.0 billion versus $89.8 billion, and decreases were $18.7 billion compared to $15.1 billion.
"Dividend payments slowed in the second quarter as uncertainty over a potential recession, earnings, and both government and corporate debt cost increased. In addition, there was also a shift seen in more selective consumer spending. Each of these factors resulted in companies becoming more cautious about dividend commitments, which is why we saw smaller increases in Q2," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "For 2023, the dollar aggregate of dividends are still expected to increase, but at less than half the pace of the double-digit 2022 growth. Given the current environment, we expect this to be in the 4% area, with the potential for additional growth."
Silverblatt continued, "The S&P 500 Q2 2023 actual payment declined 2.3% from the prior quarter, as the index ended its seven consecutive quarters of record payments. Financial dividends are expected to be limited due to the recent banking events and the expected new regulatory requirements, as well as Energy payouts, which remain volatile due to the underlying oil supply and demand issues. At this point, Q3 and Q4 payments are expected to increase with the potential of Q4 setting a new record, but it will be close."
S&P 500 Dividends
On a per share basis, S&P 500 Q2 2023 dividend payments decreased 2.3% to $17.13 per share from the prior record Q1 2023's $17.54 and were up 3.0% from Q2 2022's $16.63 payment. On an aggregate basis, index constituents paid $143.2 billion in dividends for the quarter, down from the $146.8 billion record paid in Q1 2023 and up from $140.6 billion in Q2 2022. For the 12-month June period, the index paid a record $68.71 per share, up from $64.02 for the 12-month June 2022 period, with an aggregate record $576.4 billion payment to shareholders compared to the compatible period's $542.1 billion.
The Q2 decline stopped seven consecutive quarters of dividend payment records for the S&P 500.
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):
Dividend Decreases (defined as either a decrease or suspension in dividend payments):
Non-S&P 500 Domestic Common Issues (for issues yielding 10% or less):
Large-, Mid-, and Small-Cap Dividends:
For more information about S&P Dow Jones Indices, please visit https://www.spglobal.com/spdji/en/.
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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