Second-quarter adjusted corporate profits increased $78.3 billion (3.9%) quarter-over-quarter, according to a Commerce Department estimate (link opens as PDF) released today.
After dropping off a revised 1.3% in Q1, this latest report puts profits back on the growth track.
While taxes on corporate income took a 2.6% rise for this quarter, net dividends shot up 35.9% ($273.8 billion) quarter-over-quarter and 40.3% year-over-year. This quarter's dividend increase comes primarily from Fannie Mae's distributions to the federal government. Fannie Mae has paid around $105 billion back to the government to offset the $117.1 billion it received during the Great Recession.
After-tax unadjusted profits managed a 2.6% increase for the quarter and a 5.8% increase year-over-year. At an industry level, financial corporate profits increased $14.3 billion quarter-over-quarter after a $4.1 billion slump in Q1. Nonfinancial corporations made even larger gains, boosting profits $50.4 billion, compared to a $3.1 billion loss the previous quarter.
The article Q2 Corporate Profit Up 3.9% originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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