- Q4 2022 U.S. common dividend increases were $16.3 billion, down 14.6% from $19.1 billion in Q3 2022 and down 20.6% from
$20.6 billion in Q4 2021.
- Q4 2022 U.S. common dividend decreases were $1.7 billion, up 21.6% from $1.4 billion in Q3 2022, down 34.5% from
$2.6 billion in Q4 2021.
- Q4 2022 net indicated dividend rate change increased
$14.6 billion, compared to
$17.7 billion in Q3 2022, and
$18.0 billion in Q4 2021.
- For all of 2022, U.S. common dividend increases were
$82.5 billion, up 5.0% from 2021's
$78.6 billion; decreases were up
63.0% to $14.3 billion in 2022,
compared to $8.8 billion in
2021.
- The net indicated dividend gain in 2022 was $68.2 billion, compared to $69.8 billion for 2021.
NEW
YORK, Jan. 4, 2023 /PRNewswire/ -- S&P Dow
Jones Indices announced today that the indicated dividend net
changes (increases less decreases) for U.S. domestic common stocks
increased $14.6 billion during Q4
2022, compared to $17.7 billion in Q3
2022 and $18.0 billion in Q4
2021.
For all of 2022, the net dividend rate increased $68.2 billion, compared to the net $69.8 billion in 2021. Increases were
$82.5 billion versus $78.6 billion, and decreases were $14.3 billion compared to $8.8 billion in 2021. Excluding AT&T's
$6.9 billion reduction in Q1 2022,
associated with its WarnerMedia spinoff, the 2022 decreases have
been $7.4 billion, a 16.1% decline
from 2021.
"Dividend payments continue at record levels. The strength of
the increases has declined, as concerns over interest rates,
inflation and slowing consumer spending have made companies more
measured and cautious in their commitment to dividend increases. At
this point, 2023 appears set to increase, setting another record,"
said Howard Silverblatt, Senior
Index Analyst at S&P Dow Jones Indices. "For 2023, the
number of increases is expected to grow, with February being the
most popular month for increases, even as the average increase is
expected to be limited when measured against recent inflationary
metrics."
Within the S&P 500, Q4 cash dividends set a record payment,
and were up 10.2% over Q4 2021. For all of 2022, dividends set a
new record, posting a 10.8% increase in the actual cash payment
over 2021. S&P 500 dividend payments have increased for 13
consecutive years, and set a payment record for the last 11
consecutive years.
"2023 appears set for another record payment, with the key
question being by how much as the answer may depend on the state of
the economy and corporate profits. The uncertain forecast for 2023
dividend payments is also driven by several factors including
changes in inflation, interest rates, and consumer spending.
Overall, it is clear that companies are currently protecting their
dividends, even if it means reducing buybacks," Silverblatt
concluded.
Buybacks, which set a record in Q1 2022 at $281 billion, declined in Q2 to $220 billion and in Q3 to $211 billion, with Financial issues pulling back
on their expenditures. For Q4 2022, buyback activity appears to
have increased as companies accelerated their purchases to avoid
the new 1% buyback tax set to start in 2023.
S&P 500 Dividends
On a per share basis, S&P 500 Q4 2022 dividend payments set
a record, increasing 4.4% to $17.39
from Q3 2022's $16.66, and were up
10.2% from Q4 2021 $15.78 payment. On
an aggregate basis, index constituents paid $146.1 billion in dividends in the quarter,
compared to $140.3 billion in Q3 2022
and up from $133.9 billion in Q4
2021. For 2022, the index paid a record $66.92 per share, up from $60.40 in 2021, with an aggregate $564.6 billion payment to shareholders, compared
to $511.2 billion in 2021.
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):
- 780 dividend increases were reported during Q4 2022 compared to
852 during Q4 2021, an 8.5% year-over-year decrease.
- Total dividend increases were $16.3
billion for the period, down from $20.6 billion for Q4 2021.
- For 2022, 2,827 issues increased their payments, compared to
2,910 issues for the prior period, a 2.9% decrease.
- Total dividend increases for 2022 period were $82.5 billion, up from $78.6 billion in 2021.
Dividend Decreases (defined as either a decrease or
suspension in dividend payments):
- 134 issues decreased dividends in Q4 2022, compared to 50
during Q4 2021, a 168% year-over-year increase.
- Dividend decreases were $1.7
billion in Q4 2022, down from $2.6
billion in Q4 2021.
- In 2022, 316 issues decreased their dividend payments, compared
to 170 decreases in 2021, an 85.9% decrease.
- Dividend decreases were $14.3
billion in 2022, a 63.0% increase from the $8.8 billion in 2021.
Non-S&P 500 Domestic Common Issues (for issues yielding
10% or less):
- The percentage of non-S&P 500 domestic dividend-paying
common issues increased to 20.0% in Q4 2022, compared to 19.4% in
Q3 2022, and 19.6% in Q4 2021.
- The weighted indicated dividend yield for paying issues was
3.01% in Q4 2022, down from 3.17% in Q3 2021 and up from 2.50% in
Q4 2021. The average indicated yield decreased to 3.21% in Q4 2022,
compared to Q3 2021's 3.34% and up from 2.84% in Q4 2021.
Large-, Mid-, and Small-Cap Dividends:
- 399 issues, or 79.3%, within the S&P 500 currently
pay a dividend, the same as in Q3 2022, and up from 394 (78.0%) in
Q4 2021; 27 of the 30 members of the Dow Jones Industrial
Average® pay a dividend.
- 63.8% of S&P MidCap 400® issues now pay a
dividend, down from 64.3% in Q3 2022 and down from 64.3% in Q4
2021; 52.9% of S&P SmallCap 600® issues pay a
dividend, up from 52.1% in Q3 2022 and up from 50.6% in Q4
2021.
- Yields varied and were lower than Q3 2022, as markets increased
faster for Q4 2022 than dividends. Large-cap yields decreased to
1.77% (1.85% for Q3 2022 and 1.31% for Q4 2021), mid-caps decreased
to 1.70% (1.81% for Q3 2022 and 1.26% for Q4 2021), and small-caps
decreased to 1.69% (1.75% for Q3 2022 and 1.18% for Q4 2021).
- The yields across dividend-paying market-size
classifications also varied, with large-caps at 2.19% (2.38% in Q3
2022 and 1.74% in Q4 2021), mid-caps at 2.58% (2.76% in Q3 2022 and
1.98% in Q4 2021) and small-caps at 2.92% (3.13% in Q3 2022 and
2.16% in Q4 2021).
For more information about S&P Dow Jones Indices, please
visit www.spglobal.com/spdji/en/.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P 500® and
the Dow Jones Industrial Average®. More assets are invested in
products based on our indices than products based on indices from
any other provider in the world. Since Charles Dow invented the first index in 1884,
S&P DJI has been innovating and developing indices across the
spectrum of asset classes helping to define the way investors
measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information, visit: https://www.spglobal.com/spdji/en/.
S&P DJI MEDIA CONTACTS:
April Kabahar, Head of Communications
(+1) 917 796 3121 april.kabahar@spglobal.com
Lauren Davis, External
Communications – Americas
(+1) 484 269 7118 lauren.davis@spglobal.com
Alyssa Augustyn, External
Communications – Americas
(+1) 773-919-4732 alyssa.augustyn@spglobal.com
INDEX INVESTMENT STRATEGY:
Howard Silverblatt, Senior
Index Analyst
(+1) 973 769 2306 howard.silverblatt@spglobal.com
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SOURCE S&P Dow Jones Indices