New Bloomberg Analysis Gives Income Investors Reason to Cheer

After some very tough years, income investors may finally rejoice. An analysis conducted by Bloomberg predicts that the current quarter will be the first time in years that no S&P 500 companies will cut or suspend their dividends. If true, it would mark the first such quarter since the second quarter of 2004, and it is certainly a bullish statement by US corporations. Earnings have steadily improved over the last year, and according to our data trailing twelve month reported earnings on the S&P 500 have increased 89% over the past year. Having heavily cut costs companies are flush with cash, and very few S&P 500 stocks are distressed or in need of a dividend cut to conserve capital. As a comparison, S&P 500 companies decreased dividend payouts by a record $52 billion in 2009. (more)