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%