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NEW YORK, July 24, 2008 -- Standard & Poor's, the world's leading index provider, announced today that it is decreasing the expected 2008 dividend payment for the S&P 500 from $30.30 to $28.85. The lowered estimate still represents a 4.0% increase in S&P 500 dividend payments from the $27.73 registered in 2007, and translates into a $251.0 billion aggregate payment for the S&P 500 companies for 2008.
Standard & Poor's is monitoring the 12-month indicated dividend rate, currently set at $28.85.
"Already this year, 20 Financials have decreased their dividend payments compared to just 12 over the past five years," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "As a result, the 4% expected increase in S&P 500 dividend payments for 2008 will be the lowest growth rate since 2002 when payments were up 2.1%."
Standard & Poor's data also shows that despite the cuts, Financials continue to contribute the lion's share of dividends. "While the Financials sector makes up 15.7% of the market, it contributes 25.5% of the dividends," notes Silverblatt.
Silverblatt also points out that the tendency for index issues to pay and increase cash dividends is much greater than that of the general market with 77% of the S&P 500 constituents pay cash dividends versus 39% for non-S&P 500 companies. For 2008, Silverblatt estimates that over 60% of the S&P 500 will increase their dividend payout compared to 31% for the non-S&P 500 companies.
"The overall picture for dividends is cautiously positive," adds Silverblatt. "While we continue to have strong concerns over deterioration within the Financials sector, Standard & Poor's Index Services believes that the vast majority of S&P 500 companies will continue their long history of dividend increases for the remainder of the year."
For information on S&P 500 dividends, visit: www.marketattributes.standardandpoors.com.
STANDARD & POOR'S INDEX SERVICES
S&P 500 Sector Dividend Changes: for 1/1/2008 through 7/23/2008
|
SECTOR
|
ACTIONS
|
INCREASES
|
INITIATIONS
|
DECREASES
|
SUSPENSIONS
|
|
Consumer Discretionary
|
27
|
24
|
1
|
1
|
1
|
|
Consumer Staples
|
26
|
25
|
0
|
1
|
0
|
|
Energy
|
15
|
15
|
0
|
0
|
0
|
|
Financials
|
53
|
33
|
0
|
16
|
4
|
|
Health Care
|
7
|
7
|
0
|
0
|
0
|
|
Industrials
|
27
|
27
|
0
|
0
|
0
|
|
Information Technology
|
10
|
10
|
0
|
0
|
0
|
|
Materials
|
13
|
11
|
2
|
0
|
0
|
|
Telecommunications Services
|
4
|
3
|
0
|
0
|
1
|
|
Utilities
|
18
|
17
|
1
|
0
|
0
|
|
Total
|
200
|
172
|
4
|
18
|
6
|
|
Unique Issues
|
185
|
162
|
4
|
15
|
6
|
STANDARD & POOR'S INDEX SERVICES
S&P 500 Dividend Decreases: 1/1/08 through 7/23/2008
|
Month
|
Type
|
Ticker
|
Company
|
Current Div. Rate
|
Former Div. Rate
|
Sector
|
|
JAN
|
DECREASE
|
ABK
|
Ambac Financial Group
|
$0.28
|
$0.84
|
Financials
|
|
MAR
|
DECREASE
|
ABK
|
Ambac Financial Group
|
$0.04
|
$0.28
|
Financials
|
|
MAR
|
SUSPENSION
|
BSC
|
Bear Stearns Cos
|
$0.00
|
$1.28
|
Financials
|
|
APR
|
DECREASE
|
CIT
|
CIT Group
|
$0.40
|
$1.00
|
Financials
|
|
JAN
|
DECREASE
|
C
|
Citigroup Inc
|
$1.28
|
$2.16
|
Financials
|
|
MAY
|
DECREASE
|
DHI
|
D.R.Horton
|
$0.30
|
$0.60
|
Consumer
Discretionary
|
|
MAY
|
DECREASE
|
FNM
|
Federal Natl Mtge
|
$1.00
|
$1.40
|
Financials
|
|
JUN
|
DECREASE
|
FITB
|
Fifth Third Bancorp
|
$0.60
|
$1.76
|
Financials
|
|
JAN
|
DECREASE
|
FHN
|
First Horizon Natl
|
$0.80
|
$1.80
|
Financials
|
|
JUL
|
DECREASE
|
FHN
|
First Horizon Natl
|
$0.00
|
$0.80
|
Financials
|
|
JUL
|
SUSPENSION
|
GM
|
Genl Motors
|
$0.00
|
$1.00
|
Consumer
Discretionary
|
|
APR
|
DECREASE
|
HBAN
|
Huntington Bancshares
|
$0.53
|
$1.06
|
Financials
|
|
JUN
|
DECREASE
|
KEY
|
KeyCorp
|
$0.75
|
$1.50
|
Financials
|
|
JAN
|
DECREASE
|
MBI
|
MBIA Inc
|
$0.52
|
$1.36
|
Financials
|
|
FEB
|
SUSPENSION
|
MBI
|
MBIA Inc
|
$0.00
|
$0.52
|
Financials
|
|
JAN
|
DECREASE
|
NCC
|
Natl City Corp
|
$0.84
|
$1.64
|
Financials
|
|
APR
|
DECREASE
|
NCC
|
Natl City Corp
|
$0.04
|
$0.84
|
Financials
|
|
JUL
|
DECREASE
|
RF
|
Regions Financial
|
$0.40
|
$1.52
|
Financials
|
|
JAN
|
SUSPENSION
|
SOV
|
Sovereign Bancorp
|
$0.00
|
$0.32
|
Financials
|
|
FEB
|
SUSPENSION
|
S
|
Sprint Nextel Corp
|
$0.00
|
$0.10
|
Telecommunication Services
|
|
APR
|
DECREASE
|
WB
|
Wachovia Corp
|
$1.50
|
$2.56
|
Financials
|
|
JUL
|
DECREASE
|
WB
|
Wachovia Corp
|
$0.20
|
$1.50
|
Financials
|
|
APR
|
DECREASE
|
WM
|
Washington Mutual
|
$0.04
|
$0.60
|
Financials
|
|
MAR
|
DECREASE
|
MO
|
Altria Group*
|
$1.16
|
$3.00
|
Consumer Staples
|
|
|
|
*Decreased after stock distribution |
|
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STANDARD & POOR'S INDEX SERVICES
S & P 500 Cash Dividends
|
S&P 500 Quarter End
|
Cash Dividends Per Share
|
Change
|
Dividends 12 Months Billions
|
|
|
|
2008 Estimate
|
$28.85
|
4.04%
|
$251.00
|
|
12/31/2007
|
$27.73
|
11.45%
|
$246.58
|
|
12/31/2006
|
$24.88
|
11.98%
|
$224.76
|
|
12/31/2005
|
$22.22
|
14.30%
|
$201.84
|
|
12/31/2004
|
$19.44
|
11.82%
|
$181.02
|
|
12/31/2003
|
$17.39
|
8.14%
|
$160.65
|
|
12/31/2002
|
$16.08
|
2.14%
|
$147.81
|
|
12/31/2001
|
$15.74
|
-3.26%
|
$142.22
|
|
12/31/2000
|
$16.27
|
-2.52%
|
$141.08
|
|
12/31/1999
|
$16.69
|
3.02%
|
$137.53
|
|
12/31/1998
|
$16.20
|
4.58%
|
$128.84
|
|
12/31/1997
|
$15.40
|
3.96%
|
$119.52
|
|
12/31/1996
|
$14.90
|
8.05%
|
$112.62
|
|
12/31/1995
|
$13.79
|
1.55%
|
$101.70
|
About Standard & Poor's Index Services
Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Its family of indices includes the S&P 500, an index with $1.5 trillion invested and $4.85 trillion benchmarked, and the S&P Global 1200, a composite index comprised of seven regional and country headline indices. For more information, please visit www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.
SOURCE Standard & Poor's
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