S&P Global(US:SPGI) Prnewswireยท2025-01-08 14:00Core Insights - The indicated net changes in U.S. domestic common stock dividends increased by $11.7 billion in Q4 2024, showing a rise from $9.5 billion in Q3 2024 but a decrease from $13.7 billion in Q4 2023 [1][6] - For the 12-month period ending December 2024, the net dividend rate increased by $53.3 billion compared to $36.5 billion for the same period in 2023, indicating a positive trend in dividend growth [2][6] - Dividend growth slowed in the second half of 2024, with companies hesitant to commit to larger dividend increases due to economic uncertainties and upcoming elections [3][4] Dividend Increases - In Q4 2024, U.S. common dividend increases totaled $14.2 billion, a slight increase from $14.1 billion in Q3 2024 but down 18.8% from $17.5 billion in Q4 2023 [6][7] - For the 12-month period ending December 2024, total dividend increases reached $71.4 billion, up 9.7% from $65.1 billion in the previous year [6][7] Dividend Decreases - In Q4 2024, dividend decreases amounted to $2.5 billion, a significant drop of 45.6% from $4.6 billion in Q3 2024 and down 35.7% from $3.9 billion in Q4 2023 [6][13] - For the 12-month period ending December 2024, 132 issues decreased their dividend payments, a 65.8% decrease compared to 386 decreases in the prior period [13] Future Outlook - Companies are expected to commit to larger dividend increases in 2025, driven by anticipated record earnings and a potential interest rate reduction by the Federal Open Market Committee (FOMC) [4] - February is historically the largest month for dividend increases, and a stronger performance is anticipated in February 2025 as companies may seek to compensate for previous restraint [4] S&P 500 Dividend Performance - S&P 500 Q4 2024 dividend payments reached a record of $19.81 per share, a 6.0% increase from $18.68 in Q3 2024 and a 7.8% increase from $18.38 in Q4 2023 [5] - For the entire year of 2024, the S&P 500 paid $74.83 per share, reflecting a 6.4% increase from $70.30 in 2023 [5]