It was announced today that the indicated dividend on the S&P 500 Index will be increasing.
PRNewswire/ — Standard & Poor’s, the world’s leading index provider, announced today that it is raising the indicated dividend rate on the S&P 500 from $24.00 to $25.10, and expects cash dividends for 2007 to set another record, paying out an estimated $27.35 per share in 2007 versus $24.63 estimated for 2006 and $22.22 for 2005. The anticipated 11% increase in dividend payments translates into a $246 billion aggregate payment for S&P 500 companies in 2007, compared to $222
billion in 2006 and $202 billion in 2005.
“Standard & Poor’s expects the pace of S&P 500 dividend payments to increase slightly in 2007, building upon the growth trend which began during the first quarter of 2003,” says Howard Silverblatt, Senior Index Analyst at Standard & Poor’s. “Financials continue to be the most dominant and consistent dividend paying sector, accounting for almost 30% of the S&P 500’s aggregate dividend payment.”
Standard & Poor’s data shows that while the index value of dividends increased 10.8% in 2006, there was a slight slow down in the number of issues that actually increased their rate in 2006 (282 year-to-date in 2006 versus 296 for the similar period in 2005).