- Q2 2021 U.S. common dividend increases were $15.4 billion, down 24.2% from $20.3 billion in Q1 2021 and up 130.3% from $6.7 billion in Q2 2020.
- Q2 2021 U.S. common dividend decreases were $2.5 billion, up 4.5 % from $2.4 billion in Q1 2021, and down 94.9% from $49.2 billion in Q2 2020.
- Net indicated dividend rate change increased $12.9 billion, compared to $18.0 billion in Q1 2021, and $-42.5 billion in Q2 2020.
- The median Q2 2021 dividend increase in the S&P 500 was 8.28%, up from 7.69% in Q1 2021, and 4.84% in Q2 2020.
NEW YORK, July 7, 2021: S&P Dow Jones Indices announced today that indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $12.9 billion during Q2 2021, compared to $18.0 billion in Q1 2021, $9.5 billion in Q4 2020, -$2.3 billion in Q3 2020, and -$42.5 billion in the COVID-inspired Q2 2020.
For the 12-month June 2021 period, the net dividend rate increased $38.0 billion, compared to a net declined of $22.7 billion for 12-month June 2020 period, as increases were $58.1 billion versus $46.9 billion, and decreases were $20.0 billion compared to $69.6 billion for 2020 period.
“Dividends are starting to be back in vogue as many companies that suspended their dividends have started to pay again, while others who decreased their dividends or left them unchanged in 2020, have resumed increasing their payments,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. “The overall increase in U.S. common dividends stems from the quick vaccination rate, which has led to significant increases in consumer spending and fueled U.S. record profits and cash-flow.”
Silverblatt continued, “given the general acceptance of the reopening and absent a virus upswing, corporate confidence should continue to improve, as more return to resuming dividend payments and increasing them. At this point, for the S&P 500, 2021 is well on its way to a record payout with a 5% increase in the actual cash payments in shareholders pockets.”
S&P 500 Dividends
On a per share basis, S&P 500 Q2 2021 dividend payments for the S&P 500 decreased 0.7% to $14.58 from Q1 2021’s $14.68 and were up 1.6% from the Q2 2020 $14.35 payment. On an aggregate basis, index components paid $123.4 billion in dividends in the quarter, down from $123.9 billion in Q1 2021 and up from the $119.0 billion in Q2 2020. For the 12-month June 2021 period, the index paid $57.87 per share, down from the prior period’s $59.68, with an aggregate $484.5 billion to shareholders, compared to $495.5 billion.
Additional findings from S&P Dow Jones Indices’ quarterly analysis of U.S. dividend activity include:
Dividend Increases (defined as either an increase or initiation in dividend payments):
- 568 dividend increases were reported during Q2 2021 compared to 244 during Q2 2020, a 132.8% year-over-year increase.
- Total dividend increases were $15.4 billion for the period, up from $6.7 billion for Q2 2020.
- For the 12-month June 2021, 2,403 issues increased their payments, compared to 2,084 issues for the prior period, a 15.3% increase.
- Total dividend increases for the 12-month June 2021 period were $58.1 billion for the period, up from $46.9 billion for the prior period.