NEW YORK, July 1 /PRNewswire/ — Standard & Poor's, the world's leading index provider, announced today that a record low 233 of the approximately 7,000 publicly owned companies that report dividend information to Standard & Poor's Dividend Record increased their dividend payment during the second quarter of 2009. This represents a 48.8% drop from the 455 issues that increased their dividend during the second quarter of 2008.
Additionally, dividend decreases were posted by 250 issues during the second quarter of 2009, the highest number since the second quarter of 1957, over 50 years ago.
"It's not a good time for dividend investors," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "The current trend to conserve cash and cut dividends has become defensive, with even relatively healthy companies choosing to reduce payouts. Until we see the economy better, and not just for one quarter, many companies will remain gun shy about parting with their cash."
According to Silverblatt, dividend decreases have out numbered dividend increases every year for as far back as Standard & Poor's dividend data dates - 1955. "Dividend decreases are at a record high for both the year-to-date and the 12-month period, with the number of increases also setting a new record low. Since 1955, the average has been 15 increases for every decrease. Now, it's five increases for every six decreases."
Silverblatt concludes by noting that many issues are still increasing their dividend rate, but that finding them is getting harder with risk levels higher than dividend investors are typically used to. "Standard & Poor's Index Services believes that the next test for dividends will come in August and September when companies start to review their 2010 budget and expenses. If they don't feel comfortable about a stronger 2010, we might be in for another round of cuts."
To download Standard & Poor's Dividend Record, please visit the following web address: http://www.marketattributes.standardandpoors.com/ and click on "Dividends".
YEAR POSITIVE NEGATIVE DIVIDEND
DIVIDEND DIVIDEND BREADTH
ACTIONS ACTIONS
Q2 2009 233 250 0.93
Q2 2008 455 97 4.69
Q2 2007 542 18 30.11
6 Mo Jun,'09 516 617 0.84
6 Mo Jun,'08 1,053 180 5.85
6 Mo Jun,'07 1,282 37 34.65
12 Mo Jun,'09 1,337 1,043 1.28
12 Mo Jun,'08 2,284 253 9.03
12 Mo Jun,'07 2,588 93 27.83
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: Standard & Poor's Index Services
About Standard & Poor's Index Services
Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Its family of indices includes the S&P 500, an index with $1.5 trillion invested and $4.85 trillion benchmarked, and the S&P Global 1200, a composite index comprised of seven regional and country headline indices. For more information, please visit http://www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE:MHP)
, is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for nearly 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/.
CONTACT: David R. Guarino, Communications, +1-212-438-1471,
dave_guarino@standardandpoors.com, or Howard Silverblatt, Senior Index
Analyst, +1-212-438-3916, howard_silverblatt@standardandpoors.com, both of
Standard & Poor's
