Companies Are Returning Cash To Shareholders Via Stock Dividends
Supporting Image for Blog Post

 

View from the Observation Deck 

  1. Corporate America is flush with cash. The S&P 500 (ex-Financials) cash and equivalents balance stood at $1.35 trillion at the close of Q2'14, just below the all-time high of $1.36 trillion in Q4'13, according to FactSet.
  2. Total U.S. corporate cash levels stood at $1.85 trillion at the close of Q1'14, according to data from the Federal Reserve and Treasury Strategies.
  3. The number of dividend increases has risen notably since the end of the financial crisis in 2009.
  4. From 2000-2013, the average number of increases in a given year totaled 2,139, compared to an average of 225 decreases/suspensions.
  5. Year-to-date through September, the number of increases totaled 2,337, compared to 224 decreases/suspensions. Increases are on pace to top the 2,887 posted in 2013.

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. 

To Download a PDF of this post, please click here.

Posted on Thursday, October 9, 2014 @ 2:03 PM

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.