S&P Dow Jones Indices Reports U.S. Common Indicated Dividend Payments Increase of $7.4 Billion in Q2 2025 as Dividend Growth Continues to Slow

Core Insights - The indicated dividend net changes for U.S. domestic common stocks increased by $7.4 billion in Q2 2025, a decline from $15.3 billion in Q1 2025 and $16.0 billion in Q2 2024 [1][6] - For the 12-month period ending June 2025, the net dividend rate increased by $44.1 billion, down from $54.6 billion for the same period in 2024 [2][6] - Dividend growth has declined due to concerns over cash commitments amid uncertainties regarding tariffs and their economic impact [3][4] Dividend Increases - In Q2 2025, U.S. common dividend increases totaled $9.8 billion, a decrease of 49.8% from $19.5 billion in Q1 2025 and down 52.1% from $20.4 billion in Q2 2024 [6][7] - For the 12-month period ending June 2025, total dividend increases were $57.6 billion, down 26.8% from $78.7 billion in the previous year [8][6] - A total of 480 dividend increases were reported in Q2 2025, compared to 539 in Q2 2024, marking a 10.9% year-over-year decrease [7] Dividend Decreases - In Q2 2025, there were 38 issues that decreased dividends, an 81.0% year-over-year increase from 21 issues in Q2 2024 [15] - Dividend decreases amounted to $2.3 billion in Q2 2025, compared to $4.4 billion in Q2 2024 [15] - For the 12-month period ending June 2025, 155 issues decreased their dividend payments, down from 175 in the previous year [15] Future Outlook - The second half of 2025 may see stronger dividend performance as companies await clarity on economic policies and tariff resolutions [4] - Q3 2025 is expected to show improvements in dividend payments, particularly from large banks following positive stress test results [4] - The S&P 500 is projected to achieve a record in dividend payments for 2025, with a 6% increase anticipated, down from an earlier expectation of 8% [4]