Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Some Insight Into The S&P 500 Index Dividend Payout
Posted Under: Stock Dividends

 

View from the Observation Deck 

  1. Today's chart provides a comparison of the contributions to the S&P 500 Index's dividend payout, by sector, using current levels (3/11/16) versus the end of 2008.
  2. We chose 12/31/08 levels in order to capture the fallout from the financial crisis. The U.S. was in a recession at that time. The recession lasted from December 2007 through June 2009, according to the National Bureau of Economic Research.
  3. As of 3/11/16, 419 of the constituents in the S&P 500 Index distributed a dividend to shareholders, up from 372 at the end of 2008, according to S&P Dow Jones Indices. 
  4. While Financials contributed the most to the S&P 500 Index dividend payout on 3/11/16 as well as 12/31/08, the percentage contributed by Financials is down from where it stood at the close of 2008.
  5. The aforementioned fallout from the financial crisis in 2008-2009 was hard on many financial companies, particularly the banks. In some cases, dividends were suspended altogether.
  6. On 12/31/08, Financials accounted for 20.48% of the S&P 500 Index dividend payout. One year later, however, Financials accounted for just 9.04% (12/31/09). The sector has been in recovery mode ever since.
  7. Contribution levels from Information Technology have more than doubled since the end of 2008. That is noteworthy, in our opinion, considering that technology is still regarded as a growth sector.

This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance, while the S&P Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.


To Download a PDF of this post, please click here.

Posted on Tuesday, March 15, 2016 @ 2:05 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Stocks Week Ended March 11, 2016
US Economy and Credit Markets Week Ended March 11, 2016
A Snapshot Of The S&P 500 Index Earnings Beat Rate
Retail Investors Partial To Foreign Equities Over The Past Two Years
The Correction is in the Rear View Mirror
Stocks Week Ended March 4, 2016
US Economy and Credit Markets Week Ended March 4, 2016
A Snapshot Of The Top Performing S&P 500 Sector Indices Over Time
Passive Investment Vehicles Posted The Strongest Asset Growth Since The End Of 2007
Stocks Week Ended Feb. 26th, 2016
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.