S&P 500 Index’s Dividend Payout Rebounding From COVID-19 Dip

 
View from the Observation Deck  
  1. S&P 500 Index companies paid out $123.38 billion in cash dividends in Q2'21 (preliminary data).
  2. It marked the 19th consecutive quarter in which cash dividend distributions exceeded $100.00 billion. Over the past 51 quarters through Q2'21, the average quarterly dividend payout was $88.59 billion.
  3. The low point in the chart was the $47.21 billion paid out in Q3'09. It marked the first quarter of positive GDP growth following the 2008-2009 financial crisis-induced recession. From Q3'09 to Q2'21, the index's quarterly dividend payout increased by 161.34%. 
  4. The all-time high for the quarterly dividend payout was $126.98 billion in Q1'20, around the time of the onset of the COVID-19 pandemic. 
  5. Four of the 11 sectors contributed 57.11% of the S&P 500 Index's dividend payout as of 6/30/21. Here were their contributions: 17.14% (Information Technology); 15.11% (Health Care); 13.75% (Financials); and 11.11% (Consumer Staples), according to S&P Dow Jones Indices.
  6. The S&P 500 Index's estimated annual dividend payouts for 2021 and 2022 were $60.65 per share and $65.27 per share, respectively, as of 9/27/21, up from $58.95 per share distribution in 2020, according to Bloomberg.
  7. While the S&P 500 Index dividend payout is trending higher, its dividend yield stood at just 1.33% as of 9/27/21, according to Bloomberg. It closed 2018 at 2.15%. Since 2018, dividend increases have not kept pace with rising stock prices.  
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 a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance.

Download a PDF of this post, please click here
Posted on Tuesday, September 28, 2021 @ 11:54 AM

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.