NEW YORK, Jan. 3 /PRNewswire/ — Standard & Poor's, the world's leading index provider, announced today that 1,857 of the approximately 7,000 publicly owned companies that report dividend information to Standard & Poor's Dividend Record increased their dividend in 2007, representing a 5.7% decrease from the 1,969 issues that raised their dividend in 2006.
"The decline in dividend increases reflects the current trend of favoring stock buybacks at the expense of committing to long-term cash dividends," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's.
Standard & Poor's Dividend Record also shows that for the fourth quarter of 2007, dividend increases declined 10.6% to 432 from the 483 recorded during the fourth quarter of 2006. Overall, the number of dividend payments in 2007 increased by 1.9%, but declined in the fourth quarter by 1.0%.
Additionally, Standard & Poor's data reveals that negative actions -- such as dividend decreases and suspensions -- picked up in 2007 amidst heightened concern over the current difficulties within the Financials and Consumer Discretionary sectors. Dividend extras -- such as one-time dividend payments and special dividends -- increased 1.0% (versus 14.3% in 2006) to 628 from 622 during 2006.
Standard & Poor's Silverblatt notes that, while dividend increases within the general market have declined, over 60% of the S&P 500 companies increased their dividend payment in 2007. In addition, Silverblatt estimates that S&P 500 dividend payments will increase 9.3% in 2008.
"History shows that S&P 500 issues have a greater likelihood to pay dividends than the general market, 78% versus less than 39% for the general market," adds Silverblatt. "In addition, S&P 500 issues have a much greater propensity to increase their dividend rate than the general market."
To download Standard & Poor's Dividend Record click: http://www2.standardandpoors.com/spf/pdf/media/DivStat_0712.pdf
YEAR POSITIVE NEGATIVE DIVIDEND
DIVIDEND DIVIDEND BREADTH
ACTIONS ACTIONS
Q4 2007 792 52 15.23
Q4 2006 831 23 36.13
2007 2,493 110 22.66
2006 2,617 87 30.08
2005 2,518 84 29.98
2004 2,298 62 37.06
2003 2,162 104 20.79
2002 1,756 135 13.01
2001 1,668 205 8.14
2000 1,886 137 13.77
1999 2,125 144 14.76
About Standard & Poor's Dividend Record
Standard & Poor's Dividend Record offers dividend reports on more than 23,000 securities, including 12,000 equity, bond, and money-market funds and 450 closed-end funds, listed on U.S. and major Canadian exchanges, as well as NASDAQ and selected OTC and foreign issues. The reports include the current dividend payout rate, payable date, declared date, record date, and ex- dividend date. Standard & Poor's Dividend Record also offers information about stock split and spin-off distributions, rights distributions, tax consequences, and historical dividend information.
About Standard & Poor's Index Services
Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Its family of indices includes the S&P 500, an index with $1.32 trillion invested and $4.91 trillion benchmarked, and the S&P Global 1200, a composite index comprised of seven regional and country headline indices. For more information, please visit http://www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP) , is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/.
CONTACT:
David R. Guarino
Communications
Standard & Poor's
+1-212-438-1471
dave_guarino@standardandpoors.com
Howard Silverblatt
Senior Index Analyst
Standard & Poor's
+1-212-438-3916
howard_silverblatt@standardandpoors.com