Important points
- S&P Dow Jones Indices reported that U.S. dividends increased by a net $16 billion in the first quarter of 2024.
- Nearly a third (31.6%) of the $16 billion increase was driven by three large-cap stocks: Meta, Salesforce, and Booking Holdings.
- “Large-cap stocks appear to be weathering uncertainty and volatility well” amid concerns about the economy and interest rates, S&P Dow Jones Indices said.
S&P Dow Jones Indices reports that Meta (META), Salesforce (CRM), and Booking Holdings (BKNG) will be boosted by the start of multibillion-dollar dividend payments, leading to strong growth in the first quarter of 2024. dividends increased by a net $16 billion.
The company increased dividends worth $22.7 billion in the first quarter, up from $17.5 billion in the previous quarter. These gains more than made up for his $6.7 billion dividend cut in the first quarter, after he cut his $3.9 billion dividend in the fourth quarter of 2023.
Much of the dividend growth was driven by a small number of large-cap stocks, as Meta, Salesforce, and Booking Holdings began paying their first dividends. Together, the three companies’ dividends accounted for nearly a third (31.6%) of the $16 billion increase in the first quarter of 2024.
“The large-cap stocks in the S&P 500 seem to be weathering the uncertainty and volatility well,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, adding that concerns about the economy and interest rates are likely to continue for the rest of the year. He pointed out that there is a possibility that the scale of dividend increases may be suppressed.
The U.S. Federal Reserve has signaled a potential rate cut in 2024, but policymakers also suggested they need more reports showing subdued inflation before cutting rates.
S&P Dow Jones Indices predicts that dividends for the S&P 500 index could increase by 6% in 2024, up from 5.1% in 2023 but down from 10.8% in 2022. He said that
