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Market Dividend Trends are Positive

Positive dividend news continues for the market in 2011.  Through the end of the third quarter payout declarations, in the form of increases, reinstatement’s and extras rose 17% from the same period in 2010 according to Standard and Poor’s Indices, while only 23 of the 7,000 companies that report their data to S&P cut or omitted disbursements.  Year to date through September the number of companies with positive declarations increased 26% to 1,304 from 1,033 while decreases and passed payouts fell 37% in that time.   On an absolute basis corporations added just shy of $40 billion to dividends in the past three quarters which is 50% above the total added for all of 2010.   For only the 2nd time in almost 50 years these payout boosts helped the S&P500 dividend yield exceed that of the 10 year US Treasury Note yield during the quarter, which had simultaneously seen it’s coupon drop to generational lows.

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