Tuesday, October 21, 2008

S&P Decreases Expected 2008 Dividend For The S&P 500 Index

Today, Standard & Poor's is lowering the S&P 500 Index 2008 estimated dividend by 2.8% to $28.05 versus the prior estimate of $28.85. Although S&P is lowering the expected dividend, it remains above the dividend level recorded in 2007, i.e., $27.73. The indicated dividend rate for the S&P 500 Index has also been lowered to $27.35. S&P's Senior Index Analyst, Howard Silverblatt attributes the reduction to potentially negative government actions that might limit the dividend with additional cuts anticipated in 2009.

Most of the dividend cuts have been centered in the financial sector--35 in total; however, Howard Silverblatt notes S&P:
"...believes that the majority of S&P 500 companies will continue their long history of dividend payments and increases, with over half of them expected to pay out more this year than last."
S&P 500 Estimated Dividend table October 21, 2008Source:

S&P Decreases Expected 2008 Dividend Payment for the S&P 500 Index
Q4 Payments Expected to Decline 10% - Worst Since 1958 (PDF)

Standard & Poor's
By: Howard Silverblatt & David Guarino
October 21, 2008

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