- Q2 2019 U.S. common dividends increase of $8.4 billion down from the tax-inspired $13.0 billion jump in Q2 2018
- Total S&P 500 quarterly dividend payments increased 6.3% over Q2 2018, to $118.7 billion
- Average Q2 2019 dividend increase in the S&P 500 was 11.0%, down from 13.6% during Q2 2018
NEW YORK, July 3, 2019: S&P Dow Jones Indices today announced that indicated dividend net increases (increases less decreases) for U.S. domestic common stocks were $8.4 billion during Q2 2019, down from Q2 2018’s $13.0 billion increase.
For Q2 2019, aggregate increases amounted to $12.3 billion, down from Q2 2018’s $14.7 billion. Aggregate dividend cuts increased to $3.9 billion from $1.8 billion for Q2 2018.
For the 12-month period ending in March 2019, net dividends rose $46.8 billion, compared to a gain of $51.3 billion for the prior 12-month period, as increases were $60.7 billion versus $62.5 billion, and decreases were $14.0 billion compared to $11.2 billion for the prior period.
“U.S. dividends continued upward in Q2 2019, 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 year,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. “In the S&P 500, 2019 dividends are on track for a high single-digit gain over 2018 based on their current payout policies, added Silverblatt. “Q3 policies and declarations point to another per-share record quarter setting the stage for an eighth consecutive record year.”
Record amounts of dividends and buybacks were paid since the tax law change, with buybacks remaining the favorite by far. In Q2 2019, the average dividend increase grew from Q1 2019, but trailed the tax-inspired Q2 2018 growth, when companies were significantly increasing their payment.
On a per share basis, Q2 2019 dividend payments for the S&P 500 increased 8.7% to $14.24, from the Q2 2018’s $13.10, and set a new record, surpassing the Q4 2018 record of $14.19. On an aggregate basis, index components paid $118.7 billion in dividends this quarter, up from $111.6 billion for Q2 2018, but down from the record $119.8 billion in Q4 2018.
