Today, Standard and Poor's reported fewer companies increased their dividend in the third quarter of 2007. S&P reported 439 companies out of approximately 7,000 that report dividend information to S&P's Dividend Record increased their dividend in the third quarter. This compares to 475 that increased their dividend in the same quarter last year--a 7.6% decline.
Howard Silverblatt, Senior Index Analyst at Standard & Poor’s notes:
"The decline in dividend growth continued into the third quarter as fewer companies are making a forward commitment to dividends. Standard & Poor’s believes that the explosion in corporate buyback activity is the primary contributor to the slower pace in dividend growth."
In an earlier post I detailed the dividend/buyback issue and provide a chart from the post below:
(click on graph for larger image)
Dividend Growth Continues to Slow; S&P Attributes Deceleration to Increased Corporate Buyback Activity
Standard & Poor's
By: Howard Silverblatt & David R. Guarino
October 3, 2007