- Q4 2023 U.S. common dividend increases were $17.5 billion, down 2.8% from $18.0 billion in Q3 2023 and up 7.4% from $16.3 billion in Q4 2022.
- Q4 2023 U.S. common dividend decreases were $3.9 billion, down 58.1% from $9.2 billion in Q3 2023, and up 125% from $1.7 billion in Q4 2022.
- Q4 2023 net indicated dividend rate change increased $13.7 billion, compared to $8.8 billion in Q3 2023 and $14.6 billion in Q4 2022.
- For all of 2023, U.S. common dividend increases were $65.1 billion, down 21.1% from 2022’s $82.5 billion; decreases were up 100.1% to $28.6 billion, compared to $14.3 billion for 2022.
- The net 2023 indicated dividend decline was $36.5 billion, compared to $68.2 billion in 2022, $69.8 billion in 2021 and a negative $40.8 billion in 2020.
NEW YORK, January 3, 2024: 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 billion during 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."
