NEW YORK, October 5, 2021 / PRNewswire / – The S&P Dow Jones Indices today announced that they net changes in dividends (increases minus decreases) for U.S. common stocks increased $ 20.9 billion in the third quarter of 2021, the largest increase since the first quarter of 2012 ($ 24.2 billion), compared to $ 12.9 billion in Q2 2021, and a decrease of $ 2.3 billion in the third quarter of 2020 (the second quarter of 2020 inspired by COVID was –$ 42.5 billion).
For the 12 months September 2021 period, the net dividend rate increased $ 61.4 billion, compared to a net decrease in $ 39.7 billion for 12 months September 2020 period, as the increases were $ 71.8 billion versus $ 39.5 billion, and the decreases were $ 10.5 billion compared to $ 79.2 billion for the period 2020.
âDividends are back as record profits, sales and margins have allowed companies to return to the business of returning shareholder wealth,â said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. âLarger dividend increases and a lack of cuts produced a record payout to S&P 500 shareholders in the third quarter of 2021. Based on the current dividend rates and timelines shown, the fourth quarter of 2021 looks set to replace the times that quarterly record and to set a new annual record for payments in 2021.. ”
Silverblatt continued, âThe potential headwinds are changes in the treatment of dividends or the tax rate, which are currently discussed in Washington. Similar to previous historical changes, any confirmed changes could lead to accelerated payments in the first quarter of 2022 to the fourth quarter of 2021 or the use of supplements paid in 2021. “
S&P 500 dividends
Per share, S&P 500 Q3 2021 dividend payouts for the S&P 500 set a record, rising 5.4% to $ 15.36 from the second quarter of 2021 $ 14.58 and increased by 9.9% compared to Q3 2020 $ 13.97 Payment. On an aggregate basis, index constituents paid a record $ 130.0 billion in dividends during the quarter, against $ 123.4 billion in Q2 2021 and beyond $ 115.5 billion in Q3 2020. For the 12 months September 2021 period, index paid $ 59.25 per share, up from the previous period $ 58.85, with an aggregate $ 498.9 billion to shareholders, compared to $ 487.9 billion within 12 months September 2020 period.
Additional results from the S&P Dow Jones Indices quarterly analysis of dividend activity in the United States include:
Dividend increases (defined as an increase or the start of a dividend payment):
- 584 dividend increases were reported in the third quarter of 2021, compared to 309 in the third quarter of 2020, an increase of 89.0% year-on-year.
- Total dividend increases were $ 22.2 billion for the period, from $ 8.4 billion for the third quarter of 2020.
- For the 12 months September 2021, 2,678 issues increased their payments, compared to 1,967 issues for the previous period, an increase of 36.1%.
- Total dividend increase for 12 months September 2021 period were $ 71.8 billion for the period, from $ 39.5 billion for the previous period.
Dividend decreases (defined as a decrease or suspension of dividend payments):
- 27 issues reduced dividends in the third quarter of 2021, compared to 102 in the third quarter of 2020, a decrease of 73.5% year-on-year.
- The dividend cuts were $ 1.3 billion for the period, down $ 10.8 billion for the third quarter of 2020.
- For the 12 months September 2021 period, 177 issues decreased their dividend payments, compared to 949 declines in the previous period, a decrease of 81.3%.
- The dividend cuts were $ 3.3 billion for the 12-month period 2021, an improvement over $ 43.5 billion for the previous period.
Common domestic emissions excluding S&P 500 (for emissions with an output less than or equal to 10%):
- The percentage of non-S&P 500 joint issues paying domestic dividends decreased to 20.0% in the third quarter of 2021, from 21.0% in the second quarter of 2021 and from 23.4% in the third quarter of 2020.
- The weighted indicated dividend yield for paid issues was 2.52% in the third quarter of 2021, up from 2.46% in the second quarter of 2021 and down from 2.76% in the third quarter of 2020. The reported average yield increased to 2.86% for the third quarter of 2021, from 2.76% in the second quarter of 2021, and decreased from 3.29% for the third quarter of 2020.
Large, medium and small capitalization dividends:
- 391 issues, or 77.4%, within the S&P 500 currently paying a dividend, against 386 for Q2 2021 (76.4%) and against 383 (75.8%) who paid in Q3 2020; 27 of the 30 members of the Dow Jones Industrial AverageÂ® pay a dividend.
- 63.5% of S&P MidCap 400Â® issues now pay a dividend, compared to 63.3% in Q2 2021 and against 59.0% in Q3 2020; 51.1% of S&P Small Cap 600Â® issues pay a dividend, up from 50.4% in the second quarter of 2021 and 45.4% in the third quarter of 2020.
- Yields of all market cap sizes increased from Q2 2021 and remained significantly lower than Q3 2020. Large-cap yields increased to 1.41% (1.38% for Q2 2021 and 1 , 68% for Q3 2020), mid caps increased to 1.28% (1.20% for Q2 2021 and 1.55% for Q3 2020), and small caps increased to 1.22% (1.12% for Q2 2021 and 1.47% for Q3 2020).
- Yields through dividend payment classifications by market size were closer, but varied, with large caps at 1.93% (1.88% for Q2 2021 and 2.26% for Q3 2020), mid caps at 2.06% (1.94% for Q2 2021 and 2.63% for Q3 2020) and small caps at 2.25% (2.14% for Q2 2021 and 2.97% for Q3 2020).
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SOURCE S&P Dow Jones Indices