- Payouts at S&P 500 companies over the last year footed to nearly 38% of net income during the period, according to FactSet - the highest level since February 2009. A full 44 S&P 500 companies paid annual dividends in excess of the previous 12 months of income - that's the highest number in a decade.
- Source: Aaron Kuriloff in the WSJ
- At least part of the rise is thanks to earnings that have now fallen for five quarters in a row combined with corporations that bend over backwards not to cut dividends. Caterpillar makes a nice example: It hiked its dividend 10% in June 2015, now paying out at a $3.08 per share annual rate. EPS, however, slumped to $2.18 in the 12 months ended June 30 from $3.84 a year earlier, and the CEO isn't expecting a rebound this year.
- CAT, however, is maintaining the dividend, not wanting to upset a 22-year record of making higher payouts.
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