MCGRAW HILL FINANCIAL INC 
By NEW YORK, Jan. 7, 2013 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) were $8.4 billion during the fourth quarter of 2012. The indicated dividend rate excludes special and extra one-time dividend payments, and was therefore not impacted by the massive late-year rush to avoid new, higher taxes. During Q4 2012, 1,262 dividend increases were reported, a 94.5% gain over the 649 dividend increases reported during Q4 2011. Of the approximately 10,000 U.S. traded issues, 154 companies decreased dividends in Q4 2012 compared to 27 companies in the Q4 2011. For 2012, there were 2,883 positive dividend events compared to 1,953 in 2011, and 275 negative events in 2012, compared to 101 in 2011.
"Dividends had a great 2012 with actual cash payments increasing 18% and the forward indicated dividend rate reaching a new all-time high," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Payout rates, which historically average 52%, remain near their lows at 36%. At this point, even with many January payments paid in December, we should see 2013 as setting another record for regular cash dividends."
The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend increased to 44.9% in Q4 from 43.4% in Q3. Silverblatt also determined that yields for paying issues increased throughout 2012, however ended flat at 2.80%.
"The 2.80% overall equity yield remains relatively high, even at the higher dividend tax rate, when compared to competing income producers such as corporate bonds, treasuries, or bank CDs," adds Silverblatt. "Given the range of yields within equities, from lower yielding growth issues to higher yielding income producers, this leaves investors with one of the few remaining areas of choice with measurable degrees of stability."
Additionally, Silverblatt reports that individual investors have saved $358 billion on qualified dividend tax cuts from 2003 through the 2012 expiration date. "At this point the economy remains our highest concern, with the higher dividend tax rate having some negative impact, but relatively minor," says Silverblatt.
Looking ahead, Silverblatt is seeing many positive signs for dividends, including earnings coverage and increased cash balances. "Investors are seeking income and companies are increasing their aggregate payout," adds Silverblatt. "However, while companies are paying out record dividends, these amounts are still significantly below historical payout rates. It's not a matter of companies being cheap. It's a matter of them being nervous about the economy and their resources, similar to most of us."
To download the S&P Indices Dividend Report, please visit the following web address: www.spindices.com/indices/equity/sp-500 and click on "S&P 500 Monthly Dividend Report" from the "Additional Info" drop down box. For more information about S&P Dow Jones Indices, please visit www.spindices.com.
YEAR POSITIVE NEGATIVE DIVIDEND
DIVIDEND DIVIDEND BREADTH
ACTIONS ACTIONS
--- ------- -------
Q4 2012 1262 154 8.19
Q4 2011 649 27 24.04
Q4 2010 696 28 24.86
Q4 2009 484 74 6.54
Q4 2008 475 288 1.65
Q4 2007 792 52 15.23
Q4 2006 831 31 26.81
Q4 2005 821 26 31.58
Q4 2004 754 10 75.40
YEAR POSITIVE NEGATIVE DIVIDEND
DIVIDEND DIVIDEND BREADTH
ACTIONS ACTIONS
--- ------- -------
2012 2,883 275 10.48
2011 1,953 101 19.34
2010 1,729 145 11.92
2009 1,191 804 1.48
2008 1,874 606 3.09
2007 2,513 110 22.85
2006 2,617 87 30.08
2005 2,518 84 29.98
2004 2,298 62 37.06
2003 2,162 104 20.79
2002 1,756 135 13.01
2001 1,668 205 8.14
2000 1,886 137 13.77
1999 2,125 144 14.76
Source: S&P Dow Jones Indices
U.S. DOMESTIC COMMON MARKET*
$ in millions
$ CHANGE INCREASES INITIALS DECREASES SUSPENSIONS
-------- --------- -------- --------- -----------
Q4 2009 $3,132 $1,243 -$936 -$137
Q4 2010 $7,992 $908 -$786 -$71
Q4 2011 $9,284 $1,664 -$373 -$9
Q4 2012 $10,639 $2,554 -$4,555 -$242
ACTIONS** CHANGE POSITIVE NEGATIVE
-------- ------ -------- --------
Q4 2009 $5,447 $3,301 $4,374 -$1,073
Q4 2010 $9,758 $8,043 $8,900 -$857
Q4 2011 $11,330 $10,566 $10,948 -$382
Q4 2012 $17,990 $8,396 $13,193 -$4,797
* ASE, NYSE, NASD
**Absolute changes
U.S. DOMESTIC COMMON MARKET*
$ in millions
$ CHANGE INCREASES INITIALS DECREASES SUSPENSIONS
-------- --------- -------- --------- -----------
2009 $12,075 $3,566 -$53,904 -$4,104
2010 $25,950 $3,426 -$2,538 -$298
2011 $43,965 $9,696 -$2,516 -$922
2012 $43,391 $18,638 -$7,747 -$909
ACTIONS** CHANGE POSITIVE NEGATIVE
-------- ------ -------- --------
2009 $73,835 -$42,367 $15,641 -$58,008
2010 $32,211 $26,540 $29,376 -$2,835
2011 $57,099 $50,223 $53,661 -$3,438
2012 $70,685 $53,373 $62,029 -$8,656
* ASE, NYSE, NASD
**Absolute changes
Source: S&P Dow Jones Indices
U.S. DOMESTIC PUBLIC COMMON STOCK
$ in billions
2003-2012 TOTAL SAVINGS BASED
DIVIDEND ON DIRECT
PAYMENTS QUALIFIED
OWNERSHIP
--- --- ---------
S&P 500 $2,180.60 $183.46
Non-500 $1,496.80 $174.90
------- --------- -------
Total $3,677.41 $358.36
Source: S&P Dow Jones Indices
The above estimates assume levels of direct S&P 500 ownership and dividend qualifications based on historical data. The assumptions for non-S&P 500 are based on broader indicators and are not as well documented.
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SOURCE S&P Dow Jones Indices LLC
