- Q3 2023 U.S. common dividend increases were $18.0 billion, up 84.0% from $9.8 billion in Q2 2023 and down 5.7% from $19.1 billion in Q3 2022.
- Q3 2023 U.S. common dividend decreases were $9.2 billion, up 66.5% from $5.5 billion in Q2 2023, and up 552% from $1.4 billion in Q3 2022.
- Q3 2023 net indicated dividend rate change increased $8.8 billion, compared to $4.3 billion in Q2 2023, and $17.7 billion in Q3 2022.
- For the 12-month period ending in September 2023, U.S. common dividend increases were $63.9 billion, down 26.3% from the comparable September 2022 period’s $86.7 billion; decreases were up 74.1% to $26.4 billion, compared to $15.2 billion for the same September 2022 period.
- The net 12-month September 2023 indicated dividend gain was $37.5 billion, compared to $71.5 billion ending in September 2022.
NEW YORK, October 4, 2023: S&P Dow Jones Indices announced today that the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $8.8 billion during Q3 2023, compared to a $4.3 billion increase in Q2 2023 and $17.7 billion increase in Q3 2022. Increases were $18.0 billion versus $9.8 billion for Q2 2023, and decreases were $9.2 billion compared to $5.5 billion in the previous quarter.
For all 12-months ending in September 2023, the net dividend rate increased $37.5 billion, compared to the net $71.5 billion ending in September 2022. Increases were $63.9 billion versus $86.7 billion, and decreases were $26.4 billion compared to $15.2 billion.
"Dividend payments picked up in the third quarter as increases bounced back from their Q2 decline. However, dividend decreases significantly picked up, which reduced the net gain to shareholders," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The increases were supported by T-Mobile's $3.1 billion dividend initiation, which was only second to Apple's $9.9 billion initiation in March 2012, and Microsoft's $2.1 billion increase - its largest annual increase since it initiated dividends in January 2003. Absent these two, the quarterly increases portray a cautious corporate approach to longer-term dividend commitments."
Silverblatt continued: "Given the acceptance of higher-for-longer interest rates, the impact on consumer spending, and the uncertainty surrounding the economy, a more cautious level of dividend commitments seems justified for the short-term. For Q4 2023, the dollar aggregate of dividends are expected to increase. Absent an economic event, they could even set a dividend payment record for the S&P 500 Q4 period as large caps appear to be weathering the uncertainties better than others. This result would make 2023 the 14th consecutive year of dividend increases for the index, and the 12th consecutive record year. For 2024, we expect companies to remain cautious over both consumer and government spending, and consider any impact of the political environment. This could result in restrained net dividend increases, posting a 3.5%-4.5% increase in actual cash payments for 2024 over 2023."
