MCGRAW HILL FINANCIAL INC 
By NEW YORK, Jan. 6, 2014 /PRNewswire/ -- S&P Dow Jones Indices announced today that dividend net increases (increases less decreases) rose $12.7 billion during the fourth quarter of 2013 for U.S. domestic common stock, compared to an $8.4 billion increase in the fourth quarter of 2012. 885 dividend increases were reported during the quarter, significantly lower than the tax incentivized 1,266 companies which raised dividends in 2012, but up 36.4% from the 649 companies which raised dividends in 2011. For the year, 2,895 issues increased their dividend rate, slightly up from the 2,887 which did so in 2012, but up over 48.2% from the 1,953 increases of 2011.
Of the approximately 10,000 U.S. traded issues, 51 companies decreased dividends (defined as either a decrease or suspension) in Q4 2013 compared to 154 in Q4 2012 and 27 in Q4 2011. For the year, 299 issues decreased their rate compared to 275 in 2012 and 101 in 2011.
"Dividends had a great year, with the actual cash payment increasing over 10% to set a new record," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Even the fourth quarter payments increased 6% year-over-year which speaks to the growth given how many companies paid their Q1 2013 dividend in Q4 2012. Payout rates, which historically average 52%, continue to remain near their low at 36%. At this point, we expect Q1 to be a very busy positive period for dividends, with 2014 setting another record for payments."
The percentage of non-S&P 500 domestic common issues (ASE, NYSE, NASD) paying a dividend increased to 47.7% in the fourth quarter from 47.4% in Q3, 47.3% in Q2 2013, 46.1% in Q1 2013, and 44.9% in Q4 2012.
418 companies (83.6%) in the large-cap S&P 500 pay a dividend. All 30 members of the Dow Jones Industrial Average pay a dividend.
Silverblatt determined that the weighted dividend yield declined to 2.44% from 2.60% in Q3 and 2.80% at the end of 2012. Silverblatt attributes this decline to the strong market price increase. "Dividends continue to be one of the few income generating alternatives available to investors. Interest rates have risen significantly this year, but are still historically low with alternative income producing instruments also low."
Looking ahead, Silverblatt notes the low payout ratio, record earnings and cash levels should permit companies to continue to grow dividends. "Just as important as the ability to pay is the resurrection of a friendlier atmosphere for total shareholder return. S&P Dow Jones Indices believes that this should translate into another strong, record setting dividend year for 2014 and a strong increase in share buybacks."
To download the S&P Indices Dividend Report, please visit www.spdji.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.spdji.com.
Data for all common stocks (ASE, NYSE, NASD)
YEAR POSITIVE NEGATIVE DIVIDEND
DIVIDEND DIVIDEND BREADTH
ACTIONS ACTIONS
Q4 2013 885 51 17.35
Q4 2012 1266 154 8.22
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
2013 2,895 299 9.68
2012 2,887 275 10.50
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 (ASE, NYSE, NGM, NNM, NSC)
$ CHANGE-MIL 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
Q4 2013 $13,003 $1,129 -$1,185 -$221
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
Q4 2013 $15,538 $12,726 $14,132 -$1,406
**Absolute changes
U.S. DOMESTIC COMMON MARKET (ASE, NYSE, NGM, NNM, NSC)
$ CHANGE-MIL 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 $50,368 $20,121 -$5,087 -$2,848
2013 $54,561 $9,909 -$6,377 -$1,352
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 $78,425 $62,554 $70,489 -$7,936
2013 $72,200 $56,740 $64,470 -$7,730
**Absolute changes
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SOURCE S&P Dow Jones Indices
