NEW YORK, Oct. 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 $8.8 billionduring Q3 2023, compared to a $4.3 billion increase in Q2 2023 and $17.7 billion increase in Q3 2022. Increases were $18.0 billion versus $9.8 billion for Q2 2023, and decreases were $9.2 billion compared to $5.5 billion in the previous quarter.
For all 12-months ending in September 2023, the net dividend rate increased $37.5 billion, compared to the net $71.5 billion ending in September 2022. Increases were $63.9 billion versus $86.7 billion, and decreases were $26.4 billion compared to $15.2 billion.
"Dividend payments picked up in the third quarter as increases bounced back from their Q2 decline. However, dividend decreases significantly picked up, which reduced the net gain to shareholders," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The increases were supported by T-Mobile's $3.1 billion dividend initiation, which was only second to Apple's $9.9 billion initiation in March 2012, and Microsoft's $2.1 billion increase - its largest annual increase since it initiated dividends in January 2003. Absent these two, the quarterly increases portray a cautious corporate approach to longer-term dividend commitments."
Silverblatt continued: "Given the acceptance of higher-for-longer interest rates, the impact on consumer spending, and the uncertainty surrounding the economy, a more cautious level of dividend commitments seems justified for the short-term. For Q4 2023, the dollar aggregate of dividends are expected to increase. Absent an economic event, they could even set a dividend payment record for the S&P 500 Q4 period as large caps appear to be weathering the uncertainties better than others. This result would make 2023 the 14th consecutive year of dividend increases for the index, and the 12th consecutive record year. For 2024, we expect companies to remain cautious over both consumer and government spending, and consider any impact of the political environment. This could result in restrained net dividend increases, posting a 3.5%-4.5% increase in actual cash payments for 2024 over 2023."
S&P 500 Dividends
On a per share basis, S&P 500 Q3 2023 dividend payments increased 0.7% to $17.26 per share, from the Q2 2023's $17.13 and were up 3.6% from Q3 2022's $16.66 payment. On an aggregate basis, index constituents paid $144.2 billion in dividends for the quarter, up from the $143.2 billion paid in Q2 2023 and up from $140.3 billion in Q3 2022. For the 12-month September period, the index paid a record $69.31 per share, up from $65.32 for the 12-month September 2022 period, with an aggregate record $580.2 billion payment to shareholders compared to the compatible 2022 period's $552.4 billion.
The Q3 increase comes after a 2.3% decline in Q2 2023 over Q1 2023, which followed seven consecutive quarters of record dividend payments 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/.
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/sp-dow-jones-indices-reports-us-common-indicated-dividend-payments-increase-8-8-billion-in-q3-2023--as-the-12-month-gains-37-5-billion-301947134.html
SOURCE S&P Dow Jones Indices