Dow Jones Industrial Average Component Companies Increase Expected Annual Dividend Distribution by 8.40% From a Year Ago
Survey by Dow Jones Indexes Also Indicates Expected Annual Dividend Distribution From DJIA's 30 Stocks to Rise 2.18% From Previous Quarter
DJIA Components' Dividends Represent 37% of Total U.S. Stock Market Payouts
Dividend Data Provides Insight Into Outlook of Bellwether U.S. Corporations, Dow Jones Indexes Says
NEW YORK, April 23, 2012 (GLOBE NEWSWIRE) -- The Dow Jones Industrial Average's 30 component companies are expected to increase their annual dividend payout by 8.40% year-over-year and 2.18% from the previous quarter, according to a first-quarter 2012 survey by Dow Jones Indexes.
DJIA component companies' $107 billion expected dividend distribution for the 12 months beginning April 1, 2012, represents 37% of all indicated annual dividends (IAD) by U.S. companies as measured by the Dow Jones U.S. Index, a gauge that accounts for roughly 95% of the U.S. equity market. (IAD is a forward-looking measure defined as a company's most recently paid quarterly dividend multiplied by four.)
For the quarters ended December 31, 2011 and March 31, 2011, DJIA component companies paid $104.7 billion and $98.7 billion in IAD, respectively.
"As is the case with most information gleaned from Dow Jones Industrial Average's component companies, this dividend data provides meaningful insight into the strategic outlook of bellwether U.S. corporations," said David Krein, Senior Director, Product Development and Analytics, at Dow Jones Indexes.
Nine of the 10 largest dividend distributions in the U.S. market – by total estimated payout – are DJIA component companies: AT&T, $10.5 billion IAD, or $1.76 per share; Exxon Mobil, $9.1 billion, $1.88; General Electric,$7.2 billion, $0.68; Pfizer,$6.8 billion, $0.88; Chevron, $6.5 billion, $3.24; Johnson & Johnson,$6.2 billion, $2.28; Microsoft,$6.0 billion, $0.80; Procter & Gamble,$5.8 billion, $2.10; and Verizon,$5.7 billion, $2.00.
Annually, AT&T, Exxon Mobil and General Electric – the top three payers – would account for 9.22% of all dividends paid by stocks included in the Dow Jones U.S. Index.
Since the end of 2011's fourth quarter, six DJIA companies have increased their per-share dividends: Cisco Systems,by 33.33%; JPMorgan Chase & Co., 20.00%; Pfizer,10.00%; Wal-Mart Stores, 8.90%; Coca-Cola,8.51%; and 3M Co.,7.27%.
Compared with the Dow Jones U.S. Index, Dow component companies' dividend yield (IAD divided by market capitalization) was higher by 60 basis points, or 2.55% vs. 1.95%. The DJIA companies' five-year, weighted average-dividend-growth rate was 14.86%, compared with the Dow Jones U.S. Index's 26.30%.
"One of the market's subtle truisms is that many investors track the DJIA for more than just its day-to-day pricing figures," Mr. Krein said. "As we can see with the dividend information, there is much to be learned about the broad U.S. market by mining The Dow's component companies' data for useful indications that enable investors to make informed decisions about their investment portfolios."
The complete DJIA dividend analysis, along with additional data, can be found at http://www.djindexes.com/literature/?go=analyticsandresearch.
The Dow Jones Industrial Average is owned by Dow Jones Indexes, a leading global index provider.
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