Dividend Payments Increase $9.6 Billion In Third Quarter

S&P Indices announced that dividend increases rose 17.1% during the third quarter of 2011, with 350 issues increasing their dividends versus the 299 that did so during the third quarter of 2010. Of the approximately 7,000 publicly owned companies that report dividend information, only 23 decreased their dividend payment during the third quarter of 2011 versus 35 this time last year.

"Dividends continue to battle back, adding 14.5% to their indicated rate this year, but still 6.8% shy of their all-time June 2008 high," says Howard Silverblatt, Senior Index Analyst at S&P Indices. "Payout rates, which historically average 52%, remain near their lows at under 30%, with strong cash-flow giving companies considerable room to increase payments. Part of the reason for the low payouts appears to be the uncertainty over the economy, which prevents companies from making long-term dividend commitments."

Source: The Sacramento Bee

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