- Q1 2024 U.S. common dividend increases were $22.7 billion, up 29.5% from $17.5 billion in Q4 2023 and up 14.9% from $19.7 billion in Q1 2023.
- Q1 2024 U.S. common dividend decreases were $6.7 billion, up 73.3% from $3.9 billion in Q4 2023, and down 33.3% from $10.0 billion in Q1 2023.
- Q1 2024 net indicated dividend rate change increased $16.0 billion.
- The 12-months ending March 2024, U.S. common dividend increases were $68.1 billion, down 8.6% from the 12-month March 2023 period's $74.5 billion; decreases were up 70.4% to $25.2 billion, compared to $14.8 billion for the prior 12-month period.
- The net 12-month March 2024 indicated dividend increase was $42.8 billion, compared to $59.7 billion for the prior 12-month period.
NEW YORK, April 2, 2024: S&P Dow Jones Indices announced today that the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $16.0 billion during Q1 2024, compared to the $13.7 billion increase in Q4 2023 and a $9.7 billion increase in Q1 2023. Increases were $22.7 billion versus $17.5 billion for Q4 2023, and decreases were $6.7 billion compared to $3.9 billion in Q4 2023. Three large-cap initiations accounted for 31.6% of the increase.
For the 12-months ending in March 2024, the net dividend rate increased $42.8 billion, compared to the net $59.7 billion for the 12-months ending March 2023. For 2023 it was up $36.5 billion compared to 2022's $68.2 billion, 2021 was $69.8, with negative $40.8 billion in 2020. Increases for the 12 months were $68.1 billion versus $74.5 billion, and decreases were $25.2 billion compared to $14.8 billion.
"The number of dividend increases rose compared to Q4 2023, but trailed in comparison year-over-over as companies continued to remain cautious when committing to future payments. While markets moved higher and interest rates were seen near or at their peaks, dividend decreases picked up compared to Q4 2023 and declined significantly from Q1 2023 when economic cycles impacted regular payouts," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
Silverblatt continued: "For the rest of 2024, we expect uncertainty over the economy and interest rates to limit the size of dividend increases. Absent an economic or geopolitical event, dividend growth is expected to selectively continue. S&P 500 large caps appear to be weathering uncertainty and volatility better. The index is expected to post a 6% increase in payments for 2024 compared to its 5.1% increase in 2023 and the 10.8% increase seen in 2022."
Silverblatt concluded: "The noticeable take-away for the quarter were the large-caps. Three issues, Meta Platforms, Salesforce, and Booking Holdings, all initiated multi-billion dividends ($7.2 billion annually). 20 years ago, Microsoft and QUALCOMM started paying a dividend and were criticized for giving up on growth. This past quarter though, investors did not comment on growth or reinvesting capital, which indicates a clear change in their views and approach compared to Q1 2003."
