Dividend Payouts Poised To Rise Further

Many U.S. companies have reinstated (or) increased dividend payments since the credit crisis of 2008-09. The amount of payouts and the number of companies with positive dividend actions have increased in recent months. According to Standard & Poor’s, in the first half of 2011, net cash payouts among S&P 500 companies rose by a record $25.5 billion. In addition, the number of companies that raised or initiated dividends during this time rose to 204 from 140 in the prior-year period.

Companies in the S&P 500 have amassed a near-record $3.6 trillion in cash and marketable securities. According to the report, corporate dividend payouts are poised to rise substantially in the following years due to the following three factors: Strong Earnings, Strong Balance Sheets and Historically Low Payout ratio.

Source: Top Foreign Stocks

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