$8.8 Billion in Dividend Increases

S&P Dow Jones Indices reported 439 dividend increases during the third quarter of this year, a 25.4% gain over the 350 increases reported during the third quarter of 2011. Fifty-three companies, of the approximately 10,000 U.S. traded issues, decreased their dividend in the third quarter of 2012 compared to 23 issues this time last year."Dividends continue to have a great year, with actual cash payments increasing over 19% and the forward indicated dividend rate reaching a new all-time high," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Payout rates, which historically average 52%, remain near their lows at 34%. At this point, we expect to see double-digit growth in actual dividend payments for the fourth quarter of 2012 and a potential double-double gain in 2013 – depending on Washington."

The percentage of non-S&P 500 common issues (ASE, NYSE, NASD) paying a dividend again increased, to 43.4% in the third quarter from 42.7% in the second quarter, 41.7% in the first quarter and 41.4% at the end of the fourth quarter of 2011. Silverblatt also determined that yields for paying issues decreased to 2.66% at the end of the third quarter from 2.77% at the end of the second quarter.