Dividend Rate On S&P 500 Index Cut

Standard & Poor's announced they were reducing the expected 2008 dividend rate on the S&P 500 Index to $28.85 versus the original expected rate of $30.30. The new 2008 dividend estimate remains 4% higher than the 2007 rate of $27.73.

Howard Silverblatt, Senior Index Analyst at Standard & Poor's notes:

"Already this year, 20 Financials have decreased their dividend payments compared to just 12 over the past five years. As a result, the 4% expected increase in S&P 500 dividend payments for 2008 will be the lowest growth rate since 2002 when payments were up 2.1%.

Standard & Poor’s data also shows that despite the cuts, Financials continue to contribute the lion’s share of dividends. While the Financials sector makes up 15.7% of the market, it contributes 25.5% of the dividends."

Source:

S&P Decreases Expected 2008 Dividend Payment for the S&P 500 (PDF)
Standard & Poor's
By: David Guarino and Howard Silverblatt
July 24, 2008
http://www2.standardandpoors.com/spf/pdf/index/072408_DividendRateChange-PR.pdf