Dividend growth continued in Q3… October 11, 2012

| Thursday, October 11th, 2012 | Comments Off on Dividend growth continued in Q3… October 11, 2012

Dividend payments for U.S. domestic- listed common stocks rose to a record $398 billion in aggregate for the third quarter according to Standard and Poor’s.  Out of roughly 10,000 listed issues there were 439 dividend enhancements, a 25% gain over the same point in 2011.  Fifty three companies cut payments.  There is a bona fide opportunity for dividend growth to continue, as the payout ratio (dividend payments as a percent of earnings) is running in the low 30% range, versus a long term historical average of greater than 50%.  Some notable dividend increases in the third quarter included:

Cisco Systems + 75%

Norfolk Southern + 6%  (in addition to a 9% increase they made in March equaling 16% year over year)

Texas Instruments + 24%

McDonalds + 10%

Medtronic + 7%

Microsoft + 15%

Sources: Standard and Poor’s, Barrons, Martin Capital Partners

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