Record earnings fueled by the highest profit margins since 1993 are giving executives more leeway than ever to boost dividends as the bull market enters its third year. Margins will climb to 8.9% this year, the highest level in at least 18 years, according to data compiled by Bloomberg through March 11 on non-financial companies in the S&P 500.
Greater profitability, combined with dividend cuts during the credit crisis, have pushed earnings to 6.53% of the gauge's price, or 3.5 times more than its payout rate, close to the record 3.6 multiple in January. “The economy seems to be doing well, and earnings are on the recovery path, which companies wanted to be sure about before they raised their dividends,” said John Carey, a money manager at Pioneer Investments, which oversees about $250 billion. “I feel relatively confident that most of the dividends out there are secure, and we'll see some fairly broad-based increases.”
Source: Investment News
Related Articles:
Dividend Growth Stocks News
- 2 Dividend Stocks to Double Up on Right Now - Yahoo Finance - 5/16/2025
- The Best Warren Buffett Dividend Stocks - Kiplinger - 5/15/2025
- 3 Dividend Stocks to Buy Now That Are Crushing the S&P 500 in 2025 - The Motley Fool - 5/16/2025
- 3 Dividend Stocks That Could Double Your Monthly Income - 24/7 Wall St. - 5/16/2025
- Retire Like A Boss: 3 Fantastic Dividend Stocks Yielding 7–14% - Seeking Alpha - 5/16/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Higher earnings are creating a dividend windfall
Posted by D4L | Monday, March 28, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.