- Q1 2019 U.S. common dividends increase of $11.8 billion down from the tax-inspired $18.8 billion jump in Q1 2018
- Total S&P 500 quarterly dividend payments increased 7.5% over Q1 2018, to $117.3 billion
- Average Q1 2019 dividend increase in the S&P 500 was 8.81%, down from 13.92% during Q1 2018
NEW YORK, April 3, 2019: S&P Dow Jones Indices today announced that the indicated dividend net increases (increases less decreases) for U.S. domestic common stocks was $11.8 billion during Q1 2019, down from Q1 2018’s $18.8 billion increase.
For Q1 2019, aggregate increases amounted to $16.5 billion, down from Q1 2018’s $19.9 billion. Aggregate dividend cuts increased to $4.8 billion from $1.0 billion for Q1 2018.
For the 12-month period ending in March 2019, net dividends rose $51.3 billion, compared to a gain of $45.1 billion for the prior 12-month period, as increases were $63.1 billion versus $57.5 billion, and decreases were $11.8 billion compared to $12.5 billion for the prior period.
“Overall U.S. dividends continued upward for the Q1 2019 period, but the rate of growth was considerably down from a year ago when companies rushed to pass along some of their tax savings that took effect that quarter,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
“In the S&P 500, 2019 dividends are on track for a 5.4% gain over 2018 based on their current payout policies, potentially setting the stage for an eighth consecutive record year. At this point, Q2 policies and declarations point to a return to a record quarter, with the key question remaining the size of the increases,” added Silverblatt.
Record amounts were paid in dividends and buybacks in 2018, with buybacks remaining the favorite. In Q1 2019, dividends have increased, but at a slower growth rate than 2018, when companies significantly increased their payment.
On a per share basis, Q1 2019 dividend payments for the S&P 500 increased 9.3% to $13.98, from the Q1 2018’s $12.79, but fell short of the Q4 2018 record of $14.19, which is historically consistent with payment patterns.
On an aggregate basis, index components paid $117.3 billion in dividends this quarter, up from $109.2 billion for Q1 2018 and down from the record $119.8 billion in Q4 2018.
