Dividends - more bad news and a starting list of new ones

Posted by: Howard Silverblatt on July 30, 2009

The actual July 2009 S&P 500 payments are 32% off the July 2008 payment, and the worst July since 2002
Year-to-date S&P 500 holders have been paid $29.5 billion less than last year and we estimate that for all of 2009 it will be $61.5 billion less

If there is light at the end of the tunnel, my hope at this point is that it is not a another train, heading for us in Q4 when companies finalize 2009, look ahead to 2010, and if they don’t see better times, cut dividends, and most likely anything else they can cut

We have updated our Dividend Starting Place list on the web (click here). It is not a buy list, but a screening of issues that have increased their annual dividend payments at least 10 years in a row (wiliness to pay) and made at least twice what they paid last year (less than a 50% payout) and are expected to make at least twice their current dividend rate for 2009 and 2010 (ability to pay). It is a starting place for dividend investors. But there is always risk and dividend investors have to realize that things have changed and that the easy days are gone. If they don’t believe that, they need to look at their dividend check, if they are still getting one.

http://www2.standardandpoors.com/spf/xls/index/SP500_DIVIDEND_STARTING_FILE_20090729.xls

Reader Comments

Short Positions

August 4, 2009 1:08 PM

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Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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