2006: So far a great year for dividends
Stocks on average have higher dividend payouts then they did this time last year. Shirley Lazo writes:
Dividend boosts and extra payouts both increased in the first quarter of 2006.
By Standard & Poor’s reckoning, 626 companies, among the approximately 7,000 publicly owned corporations that report distributions to its Dividend Record, hiked their payouts. That represented a 5.4% gain over the 594 enhancements in January-March 2005 and a 23.2% gain over the 508 in the comparable 2004 span.
Bonus payouts jumped 12%, to 103 from 92. This number includes payments from companies that might have raised their regular dividends, but because of considerable cash could pay an extra, as well. It also includes companies that regard an extra as a safer bet for their image and stock price than a commitment to a higher dividend that they’re not confident of sustaining.
S&P counted a total of seven resumed dividends in the quarter, against nine a year ago.