Daily Management Review

Leading U.S. companies pay record dividends in Q2


In the second quarter, U.S. corporations that comprise the S&P 500 Index paid a record $140.6 billion in dividends, according to data from S&P Dow Jones Indices cited by The Wall Street Journal.

The previous record was $123.4 billion in the second quarter of 2021, which broke the previous record of $137.6 billion set in the first quarter.

According to senior analyst of S&P Dow Jones Indices Howard Silverblatt, the United States will surpass previous records for dividend payments over the entire current year. He ascribes it to the increase in sales that followed the removal of COVID limitations and the willingness of businesses to distribute some of their higher profits to shareholders following the cut in dividends in 2020, the year with the harshest restrictions and lowest sales.

According to the expert, this year's total dividends would rise by 10% from last year and total $511.2 billion. Brian Jacobsen, senior strategic analyst at Allspring Global Investments notes that "businesses want to persuade their investors that they are in good shape."

source: wsj.com