- Q2 2024 U.S. common dividend increases were $20.4 billion, down 10.0% from $22.7 billion in Q1 2024 and up 108% from $9.8 billion in Q2 2023.
- Q2 2024 U.S. common dividend decreases were $4.4 billion, down 34.4% from $6.7 billion in Q1 2024, and down 20.7% from $5.5 billion in Q2 2023.
- Q2 2024 net indicated dividend rate change increased $16.0 billion.
- The 12-months ending June 2024, U.S. common dividend increases were $78.7 billion, up 21.1% from the 12-month June 2023 period’s $65.0 billion; decreases were up 29.2% to $24.1 billion, compared to $18.7 billion for the prior 12-month period.
- The net 12-month June 2024 indicated dividend increase was $54.6 billion, compared to $46.3 billion for the prior 12-month June 2023 period.
NEW YORK, July 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 $16.05 billion during Q2 2024, compared to the $16.03 billion increase in Q1 2024 and the $4.3 billion increase in Q2 2023. Increases were $20.4 billion versus $22.7 billion for Q1 2024 and $9.8 billion in Q2 2023, and decreases were $4.4 billion compared to $6.7 billion in Q1 2024 and $5.5 billion in Q2 2023. Alphabet's initiation accounted for $9.3 billion of the Q2 2024 increase, as Q1 2024's Brookings, Meta Platforms and Salesforce initiations accounted for $7.2 billion.
For the 12-months ending June 2024, the net dividend rate increased $54.6 billion, compared to the net $46.3 billion for the 12-months ending June 2023. For 2023, it was up $36.5 billion compared to 2022's $68.2 billion, 2021’s $69.8 billion, with the 2020 net change negative, as 43 S&P 500 issues suspended their dividends, at -$40.8 billion. Increases for the 12 months June 2024 were $78.7 billion versus $65.0 billion, and decreases were $24.1 billion compared to $18.7 billion.
"The number of dividend increases again rose in Q2 2024 compared to the previous quarter, but still trailed in comparison 12-month year-over-over as companies continued to remain cautious when committing to future payments. While markets moved higher in Q2 2024, the market gain was not as large or as broad as the previous Q1 period, as interest rates, while down, remained higher for longer, coupled with uncertain forward FOMC actions. Dividend decreases declined as dividend breadth (increases/decreases) reached 25.6, the strongest breadth since Q2 2007’s 30.1, which quantifies the upward movement," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
Silverblatt continued: "For the rest of 2024, the continued uncertainty over the economy and the timing of expected interest rate cuts will likely limit the size of dividend increases. Absent an economic or geopolitical event, dividend growth is expected to selectively continue. S&P 500 large caps have performed better than most in the first half of 2024, as the Magnificent 7 have dominated the returns. The index is expected to post a 6% increase in dividend payments for 2024 compared to its 5.1% increase in 2023 and the 10.8% increase seen in 2022."
Silverblatt also noted that following the Fed's positive stress test results and post the first half close, six major banks (BAC, C, GS, JPM, MS and WFC) increased their annual dividends by $3.5 billion, with an average increase of 9.1%. With earnings season around the corner, Silverblatt expects more increases to come.
Silverblatt concluded: "The noticeable take-away for both the first and second quarter of 2024 were the large-caps. In April, Alphabet initiated a $9.3 billion dividend rate, joining the Q1 dividend initiations from Bookings ($1.2 billion), Meta Platforms ($4.4 billion) and Salesforce ($1.5 billion), and accounting for 53% of the S&P 500's year-to-date indicated dividend gain. While the gains without the initiations are still seen as setting a record S&P 500 dividend payment for 2024, their forward cash commitment to dividends will significantly increase the payout and give investors and non-paying Boards something to think about."
