S&P 500 Index Dividend Payout Profile

Bob Carey
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S&P 500 Index Dividend Payout Profile

Posted Under: Stock Dividends

View from the Observation Deck

As of 10/15/20, 383 of the constituents in the S&P 500 Index distributed a cash dividend to shareholders. There are currently 505 stocks in the index.
For comparative purposes, since 1980, the highest number of dividend-paying stocks in the S&P 500 Index at year-end was 469 (1980), while the lowest number was 351 (2001 & 2002), according to S&P Dow Jones Indices.
Due largely to the economic fallout from the coronavirus (COVID-19) pandemic, 42 companies in the S&P 500 Index have suspended their dividend distributions so far this year and another 25 have cut their payout.
As indicated in the chart, Information Technology, Health Care and Financials contributed the most to the S&P 500 Index's dividend payout at 17.63%, 14.36% and 13.58%, respectively, as of 10/15/20 (see table).
As of 10/21/20, data from Bloomberg indicates that the total dividend payments from the constituents in the S&P 500 Index will total an estimated $59.41 per share in 2020, up from $58.69 (record high) in 2019. The estimates for 2021 and 2022 were $61.41 and $64.95, respectively. The S&P 500 Index's dividend yield was 1.75% as of 10/21/20.
The S&P 500 Index sector weightings are as follows (10/21/20): 28.10% (Information Technology); 13.93% (Health Care); 11.64% (Consumer Discretionary); 10.84% (Communication Services); 9.73% (Financials); 8.43% (Industrials); 7.00% (Consumer Staples); 3.11% (Utilities); 2.64% (Materials); 2.61% (Real Estate); and 1.96% (Energy), according to Bloomberg.

This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance, while the 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

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Posted on Thursday, October 22, 2020 @ 1:24 PM • Post Link

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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

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