Second-quarter dividends less than impressive
Written on July 8, 2009
The second quarter, which had the S&P 500 rising 15 percent in striking its largest quarterly gain since 1998, was less impressive in terms of dividends. The period had 233 S&P 500 companies increasing their dividends, the lowest count and breaking the old record of 265 in 1958, according to Howard Silverblatt, senior index analyst, Standard & Poor’s.
The April-through-June period included the second-highest number of dividend decreases of 250, with the record of 272 set in 1958.
"The current trend to conserve cash and cut dividends has become defensive, with even relatively healthy companies choosing to reduce payouts cashadvance.com. Until we see the economy better, and not just for one quarter, many companies will remain gun-shy about parting with their cash," said Silverblatt.
"The next test for dividends will come in August and September when companies start to review their 2010 budget and expenses. If they don’t feel comfortable about a stronger 2010, we might be in for another round of cuts," the analyst added.
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