NEW YORK, Jan. 6, 2021
NEW YORK, Jan. 6, 2021 /PRNewswire/ -- S&P Dow Jones Indices announced today that indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $9.5 billionduring Q4 2020, compared to a decline of $2.3 billion in Q3 2020, and a gain of $10.6 billion in Q4 2019.
For Q4 2020, aggregate increases amounted to $13.9 billion, up 64.2% from the $8.4 billion increase of Q3 2020 and up 15.7%, from Q4 2019's $12.0 billion. Aggregate dividend cuts decreased 59.8% to $4.3 billion from Q3 2020's $10.8 billion in cuts, and was up 221% from the $1.3 billion in cuts for Q4 2019.
For 2020, the net dividend rate fell $40.5 billion, compared to a gain of $45.4 billion for 2019, as increases were $41.4 billion versus $56.6 billion, and decreases were $82.2 billion compared to $11.1 billion for 2019.
"Many companies have stabilized their operations and sales and are returning cash flow to the dividend market," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. Silverblatt continued, "some issues which had suspended their payments after the start of COVID, have resumed payments. The $13.9 billion in Q4 increases represented a 15.7% increase over the pre-COVID Q4 2019 period. For the year, the $82.2 billion in cuts and suspensions took their toll but now appear to have mostly abated as increases of $41.4 billion helped limit the damage. Looking ahead to 2021, absent a failure on the COVID treatment side, dividends should be impressive with the S&P 500 expected to post a new record payment."
S&P 500 Dividends
On a per share basis, S&P 500 Q4 2020 dividend payments for the S&P 500 increased 4.8% to $14.64 from Q3 2020's $13.97 and down 3.8% from Q4 2019's $15.21 payment. On an aggregate basis, index components paid $121.6 billion in dividends in the quarter, up from $115.5 billion in Q3 2020 and down from $126.4 billion of Q4 2019. For 2020, the index set a record payment of $58.28 per share, slightly up from the prior record of 2019's $58.24, with an aggregate $483.2 billion to shareholders, compared to $485.5 billion.
Additional findings from S&P Dow Jones Indices' quarterly analysis of U.S. dividend activity include:
Dividend Increases (defined as either an increase or initiation in dividend payments):
Dividend Decreases (defined as either a decrease or suspension in dividend payments):
Non-S&P 500 domestic common issues (for issues yielding 10% or less):
Large-, Mid-, and Small-Cap Dividends:
For more information about S&P Dow Jones Indices, please visit www.spdji.com.
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SOURCE S&P Dow Jones Indices