Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Some Insight Into The S&P 500 Index Dividend Payout
Posted Under: Stock Dividends
Supporting Image for Blog Post

 
View from the Observation Deck  

  1. As of 4/30/18, 415 of the constituents in the S&P 500 Index distributed a stock dividend to shareholders. There are currently 505 stocks in the index. 
  2. 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.
  3. Information Technology and Financials contributed the most to the S&P 500 Index's dividend payout at 16.23% and 13.07%, respectively, as of 4/30/18 (see table).
  4. In Q1'18, the total dividend payments from the constituents in the S&P 500 Index totaled $109.2 billion, up 8.23% from the $100.9 billion distributed in Q1'17, according to S&P Dow Jones Indices. 
  5. S&P 500 Industrials (Old), defined as the S&P 500 minus Financials, Utilities, Real Estate and Transportation companies, had cash and equivalent holdings totaling an all-time high of $1.636 trillion in Q4'17, according to S&P Dow Jones Indices. This indicates that S&P 500 companies have the wherewithal to increase dividend payments moving forward, even without factoring in any of the capital that could potentially be allocated to dividends as a result of the cut in the federal corporate tax rate from 35% to 21% last December (Tax Cuts & Jobs Act), in our opinion. 

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 or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 is a capitalization-weighted index comprised of 500 stocks (currently 505) used to measure large-cap U.S. stock market performance, while the S&P Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

Download a PDF of this post, please click here.
Posted on Thursday, May 3, 2018 @ 10:34 AM • Post Link Print this post Printer Friendly

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.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
The Price Of Crude Oil Has Risen To An Interesting Level
Every Year Looks Volatile Compared To 2017
Consider The Potential Opportunity Costs Before You Sell In May And Go Away!
A Snapshot Of European Equities
Stock Buybacks Are Expected To Rise Markedly Thanks To Tax Reform
A Snapshot of Growth vs. Value Investing
Sector Performance Via Market Capitalization (Year-to-Date)
Some Perspective On The Performance Of The S&P 500 Index
The Current Stock Market Correction Is Behaving Like The Last One
A Global Snapshot of Government Bond Yields
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.