S&P Dow Jones Indices announced the indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $15.3 billion during Q1 2025, compared to the $11.7 billion increase in Q4 2024 and the $16.0 billion increase in Q1 2024. Increases were $19.5 billion versus $14.2 billion for Q4 2024 and $22.7 billion in Q1 2024. Decreases were $4.2 billion compared to $2.5 billion in Q4 2024 and $6.7 billion in Q1 2024.
For the 12-months ending March 2025, the net dividend rate increased $52.7 billion compared to the net $42.8 billion for the 12-months ending March 2024. For 2024 it was up $53.4 billion, 2023 was $36.5 billion, 2022 was $68.2 billion, and in 2021 it was up $69.8 billion, with the 2020 net change negative as 43 S&P 500 issues suspended their dividends at -$40.8 billion. Increases for the 12-month March 2025 period were $68.2 billion versus the previous $68.1 billion, and decreases were $15.6 billion compared to $25.2 billion in the previous period.
“Dividend growth typically is strongest in Q1, as most companies finish their fiscal year and prepare for their shareholder meeting. For Q1 2025, growth, while noticeably slower, did continue and was in line with expectations given the current economic uncertainties. This uncertainty however did not appear to stop increases, though it did limit them, as forward commitment levels appeared shy,” said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
Silverblatt continued: “Given the current level of uncertainty over global government policy and individuals concern over employment and inflation, companies may continue to evaluate the developing changes, which could translate into fewer forward commitments (i.e. production, capital expenditures, employment or dividends).”
Silverblatt concluded: “With the speed of the actions and potential negotiations and adjustments ahead, Q2 2025 dividend increases may be limited as companies take a wait-and-see approach. However, working with a base case for a higher-level resolution by mid-year, the second half of 2025 might be stronger than historical averages for dividends. For 2025, the S&P 500 is expected to post a record payment, posting a 6-7% increase in dividend payments, which is down from the pre-2025 8% expectation; for 2024 dividend payments increased 6.4% and in 2023 5.1%.”
