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Fourth Quarter 2012 Dividend Rate Increases $8.4 Billion: S&P Dow Jones Indices
December Dividend Extras The Most Since 1955

NEW YORK, Jan. 7, 2013 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) were $8.4 billion during the fourth quarter of 2012.  The indicated dividend rate excludes special and extra one-time dividend payments, and was therefore not impacted by the massive late-year rush to avoid new, higher taxes. During Q4 2012, 1,262 dividend increases were reported, a 94.5% gain over the 649 dividend increases reported during Q4 2011. Of the approximately 10,000 U.S. traded issues, 154 companies decreased dividends in Q4 2012 compared to 27 companies in the Q4 2011. For 2012, there were 2,883 positive dividend events compared to 1,953 in 2011, and 275 negative events in 2012, compared to 101 in 2011.

"Dividends had a great 2012 with actual cash payments increasing 18% and the forward indicated dividend rate reaching a new all-time high," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Payout rates, which historically average 52%, remain near their lows at 36%. At this point, even with many January payments paid in December, we should see 2013 as setting another record for regular cash dividends."

The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend increased to 44.9% in Q4 from 43.4% in Q3. Silverblatt also determined that yields for paying issues increased throughout 2012, however ended flat at 2.80%.

"The 2.80% overall equity yield remains relatively high, even at the higher dividend tax rate, when compared to competing income producers such as corporate bonds,  treasuries, or bank CDs," adds Silverblatt. "Given the range of yields within equities, from lower yielding growth issues to higher yielding income producers, this leaves investors with one of the few remaining areas of choice with measurable degrees of stability."

Additionally, Silverblatt reports that individual investors have saved $358 billion on qualified dividend tax cuts from 2003 through the 2012 expiration date. "At this point the economy remains our highest concern, with the higher dividend tax rate having some negative impact, but relatively minor," says Silverblatt.  

Looking ahead, Silverblatt is seeing many positive signs for dividends, including earnings coverage and increased cash balances. "Investors are seeking income and companies are increasing their aggregate payout," adds Silverblatt. "However, while companies are paying out record dividends, these amounts are still significantly below historical payout rates. It's not a matter of companies being cheap. It's a matter of them being nervous about the economy and their resources, similar to most of us."

To download the S&P Indices Dividend Report, please visit the following web address: www.spindices.com/indices/equity/sp-500 and click on "S&P 500 Monthly Dividend Report" from the "Additional Info" drop down box. For more information about S&P Dow Jones Indices, please visit www.spindices.com.

 

YEAR

 

POSITIVE
DIVIDEND
ACTIONS

NEGATIVE
DIVIDEND
ACTIONS

DIVIDEND
BREADTH

Q4 2012

1262

154

8.19

Q4 2011

649

27

24.04

Q4 2010

696

28

24.86

Q4 2009

484

74

6.54

Q4 2008

475

288

1.65

Q4 2007

792

52

15.23

Q4 2006

831

31

26.81

Q4 2005

821

26

31.58

Q4 2004

754

10

75.40









YEAR

POSITIVE
DIVIDEND
ACTIONS

NEGATIVE
DIVIDEND
ACTIONS

DIVIDEND
BREADTH

2012

2,883

275

10.48

2011

1,953

101

19.34

2010

1,729

145

11.92

2009

1,191

804

1.48

2008

1,874

606

3.09

2007

2,513

110

22.85

2006

2,617

87

30.08

2005

2,518

84

29.98

2004

2,298

62

37.06

2003

2,162

104

20.79

2002

1,756

135

13.01

2001

1,668

205

8.14

2000

1,886

137

13.77

1999

2,125

144

14.76





Source: S&P Dow Jones Indices


 

U.S. DOMESTIC COMMON MARKET*



$ in millions










$ CHANGE

INCREASES

INITIALS

DECREASES

SUSPENSIONS

Q4 2009

$3,132

$1,243

-$936

-$137

Q4 2010

$7,992

$908

-$786

-$71

Q4 2011

$9,284

$1,664

-$373

-$9

Q4 2012

$10,639

$2,554

-$4,555

-$242







ACTIONS**

CHANGE

POSITIVE

NEGATIVE

Q4 2009

$5,447

$3,301

$4,374

-$1,073

Q4 2010

$9,758

$8,043

$8,900

-$857

Q4 2011

$11,330

$10,566

$10,948

-$382

Q4 2012

$17,990

$8,396

$13,193

-$4,797






* ASE, NYSE, NASD




**Absolute changes














U.S. DOMESTIC COMMON MARKET*



$ in millions










$ CHANGE

INCREASES

INITIALS

DECREASES

SUSPENSIONS

2009

$12,075

$3,566

-$53,904

-$4,104

2010

$25,950

$3,426

-$2,538

-$298

2011

$43,965

$9,696

-$2,516

-$922

2012

$43,391

$18,638

-$7,747

-$909







ACTIONS**

CHANGE

POSITIVE

NEGATIVE

2009

$73,835

-$42,367

$15,641

-$58,008

2010

$32,211

$26,540

$29,376

-$2,835

2011

$57,099

$50,223

$53,661

-$3,438

2012

$70,685

$53,373

$62,029

-$8,656






* ASE, NYSE, NASD




**Absolute changes




Source: S&P Dow Jones Indices




 

U.S. DOMESTIC PUBLIC COMMON STOCK

$ in billions



2003-2012

TOTAL
DIVIDEND
PAYMENTS

SAVINGS BASED
ON DIRECT
QUALIFIED
OWNERSHIP

S&P 500

$2,180.60

$183.46

Non-500

$1,496.80

$174.90

Total

$3,677.41

$358.36




Source: S&P Dow Jones Indices

The above estimates assume levels of direct S&P 500 ownership and dividend qualifications based on historical data. The assumptions for non-S&P 500 are based on broader indicators and are not as well documented.

About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average(SM), S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote anyinvestment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Dow Jones Indices LLC

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