S&P Dow Jones Indices Reports U.S. Common Indicated Dividend Payments Increase of $15.3 Billion in Q1 2025 as Dividend Growth Continues to Slow

Core Insights - The indicated net changes in dividends for U.S. domestic common stocks increased by $15.3 billion in Q1 2025, showing a rise from $11.7 billion in Q4 2024 but a slight decrease from $16.0 billion in Q1 2024 [1][6] - For the 12-month period ending March 2025, the net dividend rate increased by $52.7 billion compared to $42.8 billion for the same period ending March 2024, indicating a positive trend in dividend payments [2][6] Dividend Increases - In Q1 2025, U.S. common dividend increases totaled $19.5 billion, a 37.0% increase from $14.2 billion in Q4 2024 but a 14.1% decrease from $22.7 billion in Q1 2024 [6][7] - For the 12-month period ending March 2025, total dividend increases were $68.2 billion, slightly up from $68.1 billion in the previous year [8][6] Dividend Decreases - In Q1 2025, dividend decreases amounted to $4.2 billion, a significant increase of 68.0% from $2.5 billion in Q4 2024, but a decrease of 37.7% from $6.7 billion in Q1 2024 [6][15] - For the 12-month period ending March 2025, dividend decreases were $15.6 billion, down 38.3% from $25.2 billion in the prior period [6][15] Market Trends - The S&P 500 is projected to post a record payment in 2025, with an expected increase in dividend payments of 6-7%, down from the pre-2025 expectation of 8% [4] - The weighted indicated dividend yield for paying issues was 2.78% in Q1 2025, down from 2.83% in Q4 2024 and 2.86% in Q1 2024 [15] Analyst Commentary - Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, noted that while dividend growth continued in Q1 2025, it was slower than expected due to economic uncertainties affecting companies' forward commitments [3][4] - The potential for limited dividend increases in Q2 2025 is anticipated as companies adopt a cautious approach amid ongoing global uncertainties [4]