Indicated dividend net changes for U.S. domestic common stocks rose $16.05B in Q2, as compared to a $16.03B increase in the prior quarter, according to the data from S&P Dow Jones Indices.
The increase was primarily driven by the initiation of Alphabet’s (GOOGL) (GOOG) first ever dividend. The Google-owner had declared a dividend of $0.20 per share.
Increases were $20.4B vs. $22.7B in the prior quarter and $9.8B in the same prior last year. Decreases were $4.4B compared to $6.7B in Q1 and $5.5B in Q2 2023.
Alphabet’s initiation accounted for $9.3B of the Q2 increase, as Q1 2024’s Bookings (BKNG), Meta Platforms (META) and Salesforce (CRM) initiations accounted for $7.2 billion, the report stated.
“The number of dividend increases again rose in Q2 2024 compared to the previous quarter, but still trailed in comparison 12-month year-over-over as companies continued to remain cautious when committing to future payments,” senior index analyst, Howard Silverblatt said.
On a per share basis, S&P 500 Q2 dividend payments rose 1.2% to $18.28 per share when compared to Q1. 539 dividend increases were reported during the second quarter, while 21 issues decreased dividends in the same period.
Silverblatt added that post the Federal Reserve’s positive stress test results and post the first half close, six major banks, which include, Bank of America (BAC), Citigropup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS) and Wells Fargo & Company (WFC) upped their dividends by $3.5B.
With earnings season around the corner, Silverblatt expects more increases to come, the report said.
Some notable companies that increased their dividends in the quarter include, Jefferies Financial Group (JEF), Kroger (KR), FedEx (FDX), Realty Income (O), Chubb (CB), Meta Platforms (META), Johnson & Johnson (JNJ).
