More Decreases, Fewer Increases and Higher Yields
"It was the worst quarter for dividends since we started keeping dividend records in 1956," says
"Yields for paying issues have doubled over the past two years to 7.28% in 2008," continues Silverblatt. "As a result, investors need to be careful of overly generous yields, which are due mostly to depressed stocks. It is a different risk-reward trade off than dividend investors are typically used to."
Silverblatt concludes by noting that many issues are still increasing their dividend rate despite the massive number of dividend cuts. "Simply put, investors need to be diligent. They need to check earnings and cash flow from current operations to ensure that the company still has the ability to pay."
To download Standard & Poor's Dividend Record, please visit the following web address: www.marketattributes.standardandpoors.com and click on "Dividends."
YEAR POSITIVE NEGATIVE DIVIDEND DIVIDEND DIVIDEND BREADTH ACTIONS ACTIONS Q4 2008 475 288 1.65 Q4 2007 792 52 15.23 2008 1,874 606 3.09 2007 2,513 110 22.85 2006 2,617 87 30.08 2005 2,518 84 29.98 2004 2,298 62 37.06 2003 2,162 104 20.79 2002 1,756 135 13.01 2001 1,668 205 8.14 2000 1,886 137 13.77 1999 2,125 144 14.76
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SOURCE Standard & Poor's