Standard & Poor's reported that dividend payments continued to rise in 2006:
- 1,969 of the approximately 7,000 publicly owned companies that report dividend information to S&P's Dividend Record increased their dividend in 2006.
- This represents a 1% increase from the 1,949 companies that raised their dividend in 2005.
- overall, the number of dividend payments rose 7.1% versus 2005 and a 16.1% increase over 2004
- special or extra dividend payments increased 14.3% to 622 in 2006 versus 544 in 2005
S&P notes extra dividend payments have increased versus regular dividend increases in part due to the fact a company is not committing to a longer ongoing regular payment. From a dividend growth analysis perspective, special dividend payments are not given much weight in the analysis of dividend growth stocks.
S&P: Dividends Rise Slightly in 2006; Extras Surge
January 4, 2006, 10:42 am