- Q3 2024 U.S. common dividend increases were $14.1 billion, down 31.1% from $20.4
billion in Q2 2024 and down 21.9% from $18.0 billion in Q3 2023. - Q3 2024 U.S. common dividend decreases were $4.6 billion, up 3.9% from $4.4 billion
in Q2 2024, and down 50.5% from $9.2 billion in Q3 2023. - Q3 2024 net indicated dividend rate change increased $9.5 billion.
- For the 12-months ending September 2024, U.S. common dividend increases were
$74.7 billion up 16.9% from the 12-month September 2023 period’s $63.9 billion;
decreases were down 26.4% to $19.5 billion compared to $26.4 billion for the prior
12-month period. - The net 12-month September 2024 indicated dividend increase was $55.3 billion
compared to $37.5 billion for the prior 12-month September 2023 period.
NEW YORK, October 9, 2024: S&P Dow Jones Indices today announced the indicated dividend net
changes (increases less decreases) for U.S. domestic common stocks increased $9.5 billion during Q3 2024, compared to the $16.0 billion increase in Q2 2024 and the $8.8 billion increase in Q3 2023. Increases were $14.1 billion versus $20.4 billion for Q2 2024 and $18.0 billion in Q3 2023. Decreases were $4.6 billion compared to $4.4 billion in Q2 2024 and $9.2 billion in Q3 2023. accounted for $7.2 billion.
For the 12-months ending September 2024, the net dividend rate increased $55.3 billion compared to the net $37.5 billion for the 12-months ending September 2023. For 2023, it was up $36.5 billion compared to 2022’s $68.2 billion and 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-month September 2024 period were $74.7 billion versus the previous $63.9 billion, and decreases were $19.5 billion compared to $26.4 billion.
“Dividends continued to grow in Q3, but at a slower rate. Q3 lacked the big-name initiation of the first half of the year when Brookings, Meta Platforms, Salesforce and Alphabet started to pay at a $16.4 billion rate, compared to Intel’s $2.1 billion dividend suspension this quarter. Companies remained shy of larger dividend commitments due to economic uncertainty,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
Silverblatt continued: “Given the FOMC’s interest rate reduction start and record earnings for Q2, and projected record earnings for both Q3 and Q4, companies may be more at ease to commit funds to larger dividend increases. For the rest of 2024, the continued uncertainty over the economy and the size of the expected interest rate cuts will likely damper the amount of dividend increases. However, dividend growth is expected to selectively continue, which would permit an increased payout. S&P 500 large caps performed better than most in the first three quarters of this year, with their record earnings, and an expected record dividend payment for 2024. In addition, S&P 500 large caps are 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 concluded: “The notable conclusion is that many companies have the ability and cash-flow to increase their dividend payments, but remain concerned over the economy, government spending and taxing policy. Given the continued economic growth with lower interest rates and the relatively low unemployment rate, a clearer picture of potential policy should emerge after the election; at which time companies can better evaluate their future commitment.”
