Expect Another Record Year For Dividends In 2013

For dividends, 2012 was a banner year. More of the same is expected in 2013. S&P 500 companies paid out a record $281.5 billion in dividends last year, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. That marked a 17% increase from a year ago and a 14% advance from the previous all-time high set in 2008.

But even as the cliff has been averted, Silverblatt sees the new year following a similar path as 2012. “Expect to see more dividend increases across all sectors, with few decreases, resulting in a new record dividend payment for 2013,” Silverblatt says in an email. The tax on dividends, about 15% last year due to the cuts that took place under President George W. Bush, will rise to as high as 20% in 2013. The increase was announced last week when Washington reached a deal on the fiscal cliff.

Source: Wall Street Journal

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