YTD DIVIDEND INCREASES SURPASSES FULL 2010

Posted by: Howard Silverblatt on April 27, 2011

The net S&P 500 Indicated Dividend Rate (increases less decreases) year-to-date of $20.985 Billion has just surpassed (today’s XOM put it over) the total increase in 2010 of $20.650 billion. Using the analogy of dividends being your pay check, YTD you have been given a 9.74% pay increase, with the 12-month increase being 17.90%. However, you are still making 10.66% less than you were making in June 2008, with my estimate that it will be early 2013 until you get the equivalent payment in your hand as you did in 2008. For the first four months of the year, the net indicated dividend increases for the S&P 500 is up 148% from the 4 Month April 2010 period, with the actual payments up 13.6%.

For the full year, I expect dividend increases to continue at a brisk pace, but not at the levels of the past four months. If the economy continues to improve (or at least Housing and Commercial Real Estate doesn’t dive), I would expect a potential second round (not that we are done with the first one yet) of Financial dividend increases at year-end, with the increased payment being made in Q1 of 2012.

Use link for files, tables, and charts div_20110427.doc

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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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