Sunday, July 04, 2010

Dividend Payers Outperforming

For the month of June and the first six months of 2010, the dividend payers in the S&P 500 Index are outperforming the non-paying stocks. For the month, the payers' return of -5.91% was better than the non-payers' return of -7.30%. Additionally, this year the payers have declined 2.90% versus the non-payers decline of 4.41%.

On a year over year basis as of June, dividend payments were up 5.7%, for the quarter up 2.6% and down 3.2% on a year to date basis. In a further sign that companies view future prospects as improving, ten companies initiated dividends versus 65 that either decreased or suspended payments in the first six months of 2009.

dividend actions as of June 2010The two negative actions this year fell in the energy sector. Valero (VLO) decreased its dividend by 67% in January and Tesoro (TSO) suspended its 20 cent dividend in February.

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