S&P 500 Index’s Dividend Payout Expected To Set An All-Time High In Q3’19

 
View from the Observation Deck  
  1. S&P 500 Index companies paid out $118.68 billion in cash dividends in Q2'19 (preliminary data). The all-time high was $119.81 billion in Q4'18. 
  2. It marked the 11th consecutive quarter in which cash dividend distributions exceeded $100.00 billion. The average payout over those 11 quarters was $110.54 billion. 
  3. Over the past 41 quarters through Q2'19 (see chart), the average quarterly dividend payout was $83.51 billion.
  4. The low point in the chart was the $47.21 billion paid out in Q3'09, the first quarter of the current economic expansion. From Q3'09 to Q2'19, the index's quarterly dividend payout increased by 151.39%.
  5. Four sectors contributed 53.85% of the S&P 500 Index's dividend payout as of 6/28/19. Here was the breakdown: 16.17% (Information Technology); 14.11% (Financials); 12.84% (Health Care); and 10.73% (Consumer Staples), according to S&P Dow Jones Indices.
  6. The potential for record-setting dividend distributions moving forward is encouraging. S&P Dow Jones Indices estimates that the dividend payout in Q3'19 could set an all-time high of around $122 billion. 
  7. The boosting of dividend distributions suggests that Corporate America is still on solid footing, in our opinion.  
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

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Posted on Tuesday, September 17, 2019 @ 1:15 PM

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.