Dividends4Life: October Has The Bad Reputation, But September Has The Resume

Standard & Poor's announced Friday that 138 of the approximately 7,000 publicly owned companies decreased their dividend during the third quarter of 2008, representing a 557% increase from the 21 issues that decreased their dividend during the third quarter of 2007.

Reported dividend increases fell 21.2% to 346 from 439 reported in the third quarter of 2007."It was the worst September for dividends since we started keeping dividend records in 1956," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "During the second quarter, companies were nervous and cautious. The third quarter, however, saw many companies deciding to take action, and that action took $22.5 billion out of the pockets of investors."

"Financial issues accounted for about two-thirds of the dividend cuts and 93% of the dollar damage during the third quarter," continues Silverblatt. "Also, no longer is it just blue chip companies cutting dividends. Many of the issues are now much smaller, and more regional. The problem has trickled down."Silverblatt concludes by noting that many issues are still increasing their dividend rate despite the massive number of dividend cuts. "However, given the uncertainty of the markets and the economy, these companies have to be extremely confident of their future earnings and cash flow."

You can download Standard & Poor's Dividend Record, at the following web address: www.marketattributes.standardandpoors.com and click on "Dividends".


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2 comments

  1. Finance Junkie // October 5, 2008 at 4:28 PM

    Hey bud,

    I did a search on your site and didn't find any commentary on Glaxosmithkline or Vodafone. I don't have positions in these companies, but they popped on a recent Morningstar search of mine. At first glance, they have dividends between 4.9 and 8%+.

    They are also offered in DRIP format w/ $0 fee for autoinvesment.

    I believe Warren Buffett has a position in GSK.

    R/ Finance Junkie

  2. Anonymous // October 6, 2008 at 7:04 AM

    It seems like I may have pre-screed them at some point in the past. I have added them to my lost of stocks to pre-screen.

    Best Wishes,
    D4L

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