Saturday, May 07, 2011

Positive Dividend Actions Now At 2006 Level

For the first four months of the year, positive dividend actions for companies in the S&P 500 Index equal levels achieved in 2006. The twelve initiated dividends this year are at their highest level during any point since 2004.

From The Blog of HORAN Capital Advisors

As the below table indicates, the sector contributing the largest percentage to the S&P 500's dividend income is now the consumer staples sector at just over 16%. In 2008, the financial sector was the largest contributor at more than 20%. Financials now account for 11.9% of the index's dividend income. Many investors and strategist seem to be counting on greater dividends from banking firms. This may materialize in the second half of 2011.

Data Source: Standard & Poor's

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