Dividends at Record Levels

Publicly traded companies issued a record number of dividend increases in the first quarter, with dividend net increases rising $17.8 billion, according to data from S&P Dow Jones Indices.

During the first three months of the year, 1078 dividend increases were reported, a 14% increase from the prior year period and displacing the prior first quarter record of 1069 set in 1979.

"Companies are being pressured to use their available cash, resulting in near record levels of total shareholder returns from public companies from both cash dividends and buybacks," S&P Dow Jones Indices senior index analyst Howard Silverblatt said.  He also noted that increases outnumbered decreases by more than 10 to 1.

Of the roughly 10,000 U.S. traded companies, only 102 companies decreased or suspended dividends in the quarter, compared with 139 companies a year earlier.

Source:  Wall Street Journal

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57% of the holdings in the D2 Capital Management Multi-Asset Income Portfolio consist of dividend paying companies.  Current dividend yield of the total portfolio is 5.43% (as of 9 April 2014).

Disclosure:  I own the D2 Capital Management Multi-Asset Income Portfolio

The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.