S&P 500 DIVIDENDS ON TRACK FOR DOUBLE-DIGIT INCREASE IN CASH PAYMENTS IN 2014: PAID 5 MO MAY,’14 + CURRENT DECLARED RATE FOR THE NEXT 7 MO = 10.5% INCREASE OVER 2013
Absent quick dividend cuts, it would appear we are past the point of not posting a double-digit gain in actual cash dividends payments for the S&P 500 (although I would never underestimate the ability of congress).
IF there are no changes in the S&P 500 membership, weights or dividend rates for the rest of the year (not going to happen), using the actual declared payments, and the current dividend rate of the issues over the next seven months would result in a double-digit gain in the actual cash dividend payments for 2014.
Since I look at dividends as a paycheck, how many of you can claim a back-to-back double digit annual increase in your pay, with both years setting a new high?
Based on the paid and declared rates to date, 353 issues in the S&P will pay more in cash dividends in 2014 than in 2013 (again, they could cut).
There are now 421 issues paying a cash dividend in the S&P 500, the most since 423 in September 1998 (S&P 500 closed Sep,’98 at 1017).
It was 473 when I started at S&P in 1977, when Berkshire Hathaway broke $100 – yes the one that now sells for $191,415 and last paid a dividend in 1962 of $0.10.
This article was written by Howard Silverblatt, senior index analyst, S&P Dow Jones Indices.
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