- Q4 2018’s U.S. common dividends increased $7.4 billion helping total FY 2018 indicated dividend payments increase a record $58.4 billion
- Total S&P 500 quarterly dividend payments also set a new record at $14.19 per share, or $119.8 billion total
- Average Q4 2018 dividend increase in the S&P 500 was 10.24%, down from 10.41% during Q4 2017; 2018 average is 13.48%, up from 2017’s 11.36%
NEW YORK, January 3, 2019: S&P Dow Jones Indices today announced that the indicated dividend net increases (increases less decreases) for U.S. domestic common stocks increased $7.4 billion during Q4 2018, up from Q4 2017’s $4.5 billion increase.
For Q4 2018, aggregate increases amounted to $11.9 billion, down from Q4 2017’s $12.4 billion. Aggregate dividend cuts decreased to $4.5 billion from $7.9 billion for Q4 2017.
For 2018, net dividends rose $58.4 billion, compared to a gain of $37.1 billion in 2017, as increases were $66.5 billion versus $49.6 billion, and decreases were $8.1 billion compared to $12.5 billion for 2017.
“2018 was a banner year for dividend increases as corporations used their savings from lower tax rates to push dividends and buybacks to record levels. Based on their current payout policies, S&P 500 2019 dividends already have a 3.5% tailwind built in, setting the stage for potentially another record year, with the increase again expected to outpace wage growth and inflation. While the ability is there, uncertainty over economic growth, interest rates, trade, tariffs, and government policy may limit commitment toward higher dividends until those issues are resolved. At this point, however, Q1 is expected to post a strong showing of dividend increases, as they do historically, with the key question for holders being the size of the increases,” said Howard Silverblatt, Senior Index Analyst, S&P Dow Jones Indices.
“Though record amounts have been paid in dividends and buybacks, buybacks remain the favorite, as dividend payouts (dividends as a percentage of as-reported GAAP earnings) have declined for 2018 to below 40%, compared to the quarterly mid-40% range for 2017, and longer-term 51% rate (from 1936).”
Q4 2018 dividend payments for the S&P 500 set a record at $14.19 per share, a 3.9% increase from the Q3 2018 record of $13.66 per share, and an 11.0% year-over-year gain, with 2018 up 9.8% over 2017($53.74 per share versus $48.93 per share). On an aggregate basis, index components paid a record $119.8 billion this quarter, up from $115.7 billion for Q3 2018 and up to $456.3 billion for 2018 from 2017’s $419.8 billion.
