{"id":409686,"date":"2021-01-06T11:03:20","date_gmt":"2021-01-06T16:03:20","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=409686"},"modified":"2021-01-06T11:03:20","modified_gmt":"2021-01-06T16:03:20","slug":"sp-dow-jones-indices-reports-u-s-indicated-dividend-payments-increased-9-5-billion-in-q4-2020-a-reversal-from-q3s-2-3-billion-decline","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/sp-dow-jones-indices-reports-u-s-indicated-dividend-payments-increased-9-5-billion-in-q4-2020-a-reversal-from-q3s-2-3-billion-decline\/","title":{"rendered":"S&P Dow Jones Indices Reports U.S. Indicated Dividend Payments Increased $9.5 Billion in Q4 2020, a reversal from Q3’s $2.3 billion decline"},"content":{"rendered":"
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– Q4 2020 U.S. common dividend increases were $13.9 billion, up from $8.4 billion in Q3 2020, $6.7 billion in Q2 2020, and $12.0 billion in Q4 2019.<\/h2>\n

– Q4 2020 U.S. common dividends decreases were $4.3 billion, down from $10.8 billion in Q3 2020, $49.2 billion in Q2 2020 and up from $1.3 billion in Q4 2019.<\/h2>\n

– Net indicated dividend rate change increased $9.5 billion, compared to -$2.3 billion in Q3 2020, Q2 2020’s $42.5 billion decline and Q4 2019’s $10.6 billion increase.<\/h2>\n

– The median Q4 2020 dividend increase in the S&P 500 was 6.56%, up from Q3 2020’s 4.17, 4.84% in Q2 2020 and down from the 9.09% in Q4 2019.<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n NEW YORK<\/span>, Jan. 6, 2021<\/span> \/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 billion<\/span><\/b>during Q4 2020, compared to a decline of $2.3 billion<\/span> in Q3 2020, and a gain of $10.6 billion<\/span> in Q4 2019. <\/p>\n

For Q4 2020, aggregate increases amounted to $13.9 billion<\/span>, up 64.2% from the $8.4 billion<\/span> increase of Q3 2020 and up 15.7%, from Q4 2019’s $12.0 billion<\/span>. Aggregate dividend cuts decreased 59.8% to $4.3 billion<\/span> from Q3 2020’s $10.8 billion<\/span> in cuts, and was up 221% from the $1.3 billion<\/span> in cuts for Q4 2019.<\/p>\n

For 2020, the net dividend rate fell $40.5 billion<\/span>, compared to a gain of $45.4 billion<\/span> for 2019, as increases were $41.4 billion<\/span> versus $56.6 billion<\/span>, and decreases were $82.2 billion<\/span> compared to $11.1 billion<\/span> for 2019. \u00a0<\/p>\n

“Many companies have stabilized their operations and sales and are returning cash flow to the dividend market,” said Howard Silverblatt<\/span>, Senior Index Analyst at S&P Dow Jones Indices. <\/b>Silverblatt continued, “some issues which had suspended their payments after the start of COVID, have resumed payments.\u00a0The $13.9 billion<\/span> in Q4 increases represented a 15.7% increase over the pre-COVID Q4 2019 period. For the year, the $82.2 billion<\/span> in cuts and suspensions took their toll but now appear to have mostly abated as increases of $41.4 billion<\/span> 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.”<\/p>\n

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\n S&P 500 Dividends<\/u>
\n <\/b>\n <\/p>\n

On a per share basis, S&P 500 Q4 2020 dividend payments for the S&P 500 increased 4.8% to $14.64<\/span> from Q3 2020’s $13.97<\/span> and down 3.8% from Q4 2019’s $15.21<\/span> payment. On an aggregate basis, index components paid $121.6 billion<\/span> in dividends in the quarter, up from $115.5 billion<\/span> in Q3 2020 and down from $126.4 billion<\/span> of Q4 2019.\u00a0 For 2020, the index set a record payment of $58.28<\/span> per share, slightly up from the prior record of 2019’s $58.24<\/span>, with an aggregate $483.2 billion<\/span> to shareholders, compared to $485.5 billion<\/span>. <\/p>\n

Additional findings from S&P Dow Jones Indices’ quarterly analysis of U.S. dividend activity include:<\/p>\n

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\n Dividend Increases (defined as either an increase or initiation in dividend payments):<\/u>
\n <\/b>\n <\/p>\n