NEW YORK, Jan. 3, 2024 /PRNewswire/ -- S&P Dow Jones Indices announced today that the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $13.7 billionduring Q4 2023, compared to an $8.8 billion increase in Q3 2023 and a $14.6 billion increase in Q4 2022. Increases were $17.5 billion versus $18.0 billion for Q3 2023, and decreases were $3.9 billion compared to $9.2 billion in Q3 2023.
For all of 2023, the net dividend rate decreased $36.5 billion, compared to the net $68.2 billion for 2022. Increases were $65.1 billion versus $82.5 billion, and decreases were $28.6 billion compared to $14.3 billion.
"The number of dividend increases slowed in the fourth quarter as companies appeared to be more cautious when committing to them. As markets moved higher, and interest rates were seen near or at their peaks, dividend decreases significantly declined," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
Silverblatt continued: "Given the uncertainty surrounding the economy, interest rates potentially at or near their highs, and the belief that the Fed may start to reduce rates in the first half of 2023, the higher-for-longer approach from companies is expected to continue. This would result in a more cautious level of dividend commitments going forward. For 2024, the dollar aggregate of dividends is expected to increase once again. Absent an economic or geopolitical event, S&P 500 large caps appear to be weathering volatility better, as the index is expected to post its 15th consecutive year of dividend increases. In addition, the index is also expected to log its 13th consecutive record year, with a 4.5% - 5% increase in payments for 2024, compared to its 5.1% increase in 2023 and its 10.8% increase in 2022. Overall, companies will likely remain cautious in 2024, as they consider both consumer and government spending and also any impact to the political environment."
S&P 500®Dividends
On a per share basis, S&P 500 Q4 2023 dividend payments increased 6.5% to a record $18.32 per share, from Q3 2023's $17.26 and up 5.7% from Q4 2022's $17.39 payment. On an aggregate basis, index constituents paid a record $154.1 billion in dividends for the quarter, up from the $144.2 billion paid in Q3 2023 and up from $146.1 billion in Q4 2022. For 2023, the index paid an annual record of $70.30 per share, up from $66.92 for 2022, with an aggregate record $588.2 billion payment to shareholders compared to 2022's $564.6 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):
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 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
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SOURCE S&P Dow Jones Indices